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Outlined below are all the latest news you 'need to know'.
Regulations have been made to enable any excess transfer balance amount to be commuted from certain complying income streams.
The changes do not address plans to allow for the commutation of legacy pensions.
The regulations address issues arising from situations where a capped defined benefit income (CDBIS) stream such as a TAP commenced prior to 1 July 2017 are subsequently rolled into a new TAP which are not treated as a CDBIS.
A CDBIS such as a TAP started pre 1 July 2017 cannot create an excess transfer balance cap however, if rolled out into a new TAP post 30 June 2017 the new income stream would not be treated as a CDBIS meaning there may be excess transfer balance cap issues.
The changes allow any resulting excess transfer balance amount to be commuted to rectify the excess.
Advisors should consider whether:
Regulations have been made that give effect to the extension of the temporary reduction in minimum drawdown rates for super pensions for 2022/23, as announced by the Government in the 2022 Federal Budget.
Advisers should check with super funds whether:
The ATO has released several important superannuation rates and thresholds for the 2022/2023 financial year.
One important change includes the increase in super guarantee from 10% to 10.5% from 1 July 2022.
It may be necessary to update superannuation recommendations for the new financial year in the context of these rate thresholds and other changes from 1 July 2022.
In addition, it may be necessary to update affected assumptions in any financial modelling tools.
If you have any questions, or would like more information, please contact the IOOF TechConnect team on 1300 650 414.
The information in this section of the website is intended for financial advisers only and is not to be distributed to clients. It has been prepared on behalf of Australian Executor Trustees Limited ABN 84 007 869 794 AFSL 240023, IOOF Investment Management Limited ABN 53 006 695 021 AFSL 230524, IOOF Investment Services Ltd ABN 80 007 350 405, AFSL 230703 and IOOF Ltd ABN 21 087 649 625 AFSL 230522 based on information that is believed to be accurate and reliable at the time of publication.