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.
The contents of this resource are taken to be correct at the time of publication.
Disclaimer: Technical Papers contain factual information only and are prepared without considering particular objectives, financial circumstances and needs. The information provided is not a substitute for legal, tax and financial product advice. The information contained in this document does not constitute advice given by the SMSF Association to you. If you rely on this information yourself or to provide advice to other persons, then you do so at your own risk. The SMSF Association is not licensed to provide financial product advice, legal advice or taxation advice. We recommend that you seek appropriate professional advice before relying upon the information in this technical paper. 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 paper is not considered financial advice for the purposes of the Corporations Act 2001. © SMSF Association