Proposed new super pension rules – necessary reforms for Australia's future

For too long complex rules about "retirement income streams" have hindered the development of innovative new products for Australian retirees. Much of the commentary around the 2016/17 Federal Budget has focused on the contribution limit and tax changes with superannuation – overlooking the promising changes to retirement income streams which promise to simplify a needlessly complex area of law. In this thinking piece we examine some of the significant changes on the horizon.

Australia's superannuation laws are complex. Industry outsiders might not be surprised to learn that incredibly detailed rules limit how your superannuation savings may be used. "Retirement income streams" (such as pensions and annuities) have limitations such as maximum and minimum withdrawal amounts in order to receive concessional tax treatment. Should the Government's proposals in the 2016/17 Federal Budget be enacted, new rules will also restrict superannuation accounts in the payment phase