Draft TRIS legislation gets thumbs up from SMSF Association

The Government’s decision to release exposure draft legislation to ensure that a Reversionary Transition to Retirement Income Stream (TRIS) automatically transfers to eligible dependants on the death of the primary recipient has been welcome by the SMSF Association.

Association CEO John Maroney says this “positive initiative” was a key element of the Association’s Budget submission.

“The Association recommended amending the TRIS provisions to ensure they can automatically revert to dependants.

“The amendment removes the compliance burden involved in ending and then starting again a new death benefit pension in situations where the beneficiary had not met their own condition of release.

“It also ensures that reversionary TRISs are afforded a 12-month delay for the transfer balance credit to occur on the death of an individual, giving the beneficiary the necessary time to get their affairs in order.

“As the Association said in its budget submission, ‘it gives beneficiaries 12 months before the pension is credited to their TBC, reduces documentation and compliance burden and rightfully places these pensions into the same legal position as reversionary account-based pensions (ABPs)’.”

Maroney says the Association commends the Government for acting quickly to further ensure a smooth implementation of the 2016-17 Budget superannuation taxation reform package.

“We look forward to making a submission on the draft legislation and call for the remainder of our superannuation red-tape issues in our Pre-Budget submission to be actively considered.”