Technically Speaking: The modern day importance of meeting the retirement definition

This is part one of our series on the importance of ‘retirement’ which takes a close look at the various provisions in both the superannuation and taxation laws which underpin the Government’s objective of ensuring superannuation savings support an individual’s retirement. Part two to follow over the coming months will take a deep dive into the SIS Act definition of ‘retirement’ and consider the key elements which need to be satisfied.

‘Retirement’ remains the condition of release that allows members who are of preservation age, and who wish to voluntarily access their superannuation before the age of 65, to gain access to their superannuation savings without any restrictions. So why the need to keep revisiting the concept of ‘retirement’ after all it has been around for so many years?

This edition of Technically Speaking, written by the Association’s Technical Manager, Mary Simmons, highlights the need to understand how the retirement definition impacts on:

• The background of member interests including preservation status;
• A member’s interest and the preservation status of their benefits;
• A member’s ability to contribute;
• Transition to Retirement Income Streams (TRIS);
• In-specie benefit payments; and
• Small business CGT concessions such as the 15-year and retirement exemptions.