Transition to retirement income streams (TRIS) are available to assist members to gradually move to retirement by accessing a limited amount of super. In prior years, where a member received a TRIS, the fund was eligible for tax free earnings on the super assets that supported it.
Earnings from assets supporting these types of TRIS will be taxed at 15% regardless of the date the TRIS commenced.
You can no longer claim exempt current pension income (ECPI) from assets supporting a TRIS where the member is not in the retirement phase.
A TRIS is not in the retirement phase until the member reaches 65 years old, or notifies their fund that they have satisfied one of the following 'nil' cashing restriction conditions of release:
- retirement
- permanent incapacity
- terminal illness.
A TRIS will also be in retirement phase if it starts to be paid to a reversionary beneficiary after the member’s death, irrespective of whether the reversionary beneficiary has reached 65 years old or they have personally met a nil cashing restriction condition of release.
You will need to include income from assets supporting a TRIS that is not in the retirement phase in assessable income. Once the member has met a 'nil' cashing restriction condition of release, the TRIS moves into the retirement phase. The fund is then able to start claiming ECPI on the earnings from assets supporting the TRIS, and the account balance of the TRIS at this date is counted towards the member's transfer balance cap.
See also:
- LCR 2016/10: Superannuation reform: defined benefit income streams – non commutable, lifetime pensions and lifetime annuities
- GN 2019/1 - Changes to transition-to-retirement income streams