Tech Files: TRIS strategy tips and traps

This paper was presented at the SMSF Association National Conference on February 14 2018 by Tim Miller of Miller Super Solutions. 

1 July 2017 marked the most significant changes to the taxation of superannuation since the 2007 superannuation reform. The introduction of the Transfer Balance Cap has resulted in a number of changes to how pensions, and in particular transition to retirement income streams (TRIS) can be operated within a Self Managed Superannuation Fund (SMSF).

The paper focuses on TRIS and identifies the key differences pre and post 1 July 2017 whilst reaffirming many of the important definitions linked to paying a pension, some of which have changed as a result of super reform.

The paper assumes the reader has an understanding of the Transfer Balance Cap and when amounts are credited and debited to and from an individual’s transfer balance account, it also assumes an understanding of the concept of the Total Superannuation Balance.

At the time of publishing, the contents of this resource were accurate and correct.

Disclaimer: Technical Papers contain general advice only and are prepared without taking into account particular objectives, financial circumstances and needs. The information provided is not a substitute for legal, tax and financial product advice. Before making any decision based on this information, you should assess its relevance to the individual circumstances of your client. While the SMSF Association believes that the information provided is accurate, no warranty is given as to its accuracy and persons who rely on this information do so at their own risk. The information provided in this bulletin is not considered financial product advice for the purposes of the Corporations Act 2001. © SMSF Association