The Government has announced it will amend the super tax laws to address some minor but important issues, as part of the ongoing super reforms. The changes include:
- deferring the start date for the comprehensive income product for retirement (CIPR) framework;
- adjusting the definition of “life expectancy period” to account for leap years in calculations, and amending the pension transfer balance cap rules to provide credits and debits when these products are paid off in instalments;
- adjusting the transfer balance cap valuation rules for defined benefit pensions to deal with certain pensions that are permanently reduced after an initial higher payment;
- correcting a valuation error under the transfer balance cap rules for market-linked pensions where a pension is commuted and rolled over, or involved in a successor fund transfer;
making changes to ensure that death benefit rollovers involving insurance proceeds remain tax-free for dependants.