The Government has today released exposure draft legislation to ensure that a reversionary Transition to Retirement Income Stream (TRIS) will always be allowed to automatically transfer to eligible dependants upon the death of the primary recipient.
"Allowing a TRIS to automatically revert in all cases will simplify administrative processes for superannuation funds. It will also make it easier for superannuation members by eliminating the need for recently bereaved dependants to quickly engage with the super affairs at what is a particularly difficult time," said the Minister for Revenue and Financial Services, the Hon Kelly O'Dwyer MP.
Currently, a reversionary TRIS cannot transfer to a dependant if the dependant themselves has not satisfied a condition of release. Removing this requirement will better align a reversionary TRIS with other reversionary income stream products, reducing administrative complexity and confusion.
"This technical change is further evidence of the Government's commitment to ensuring the smooth implementation of the 2016-17 Budget superannuation taxation reform package."
The exposure draft legislation and explanatory materials are available on the Treasury website and interested stakeholders are encouraged to provide their views.
Submissions are invited by Friday 23 February.