The Federal Government has clearly signalled that self managed superannuation funds (SMSFs) will not be included in new rules enabling superannuation funds to provide a greater range of income stream type products.
The Assistant Treasurer, Josh Frydenberg made the status of SMSFs under the proposed new arrangements clear in his address to the Tax Institute when he outlined progress with respect to the Treasury’s Income Streams Review.
He said the aim was to provide more flexibility for innovation and to allow industry to develop the type of products that might form part of retirement income streams in the future.
“At present, only a very limited range of annuities qualify for the tax exemption on assets supporting retirement income products,” Frydenberg said.
“Under the proposed new rules, concessional tax treatment would be extended to a wider range of products.”
The Assistant Treasurer said Treasury had been working closely with stakeholders on a proposal for a new alternate set of rules and the Government would consider the results of this, with a view to announcing a package of changes later this year.
“While the details have yet to be finalised, at this stage it is not envisaged that SMSFs would be able to provide products under the proposed new rules,” Frydenberg said.
“These changes will lay the groundwork for opening up new products along the lines envisaged in the Final Report of the Financial System Inquiry.”
