From 1 July 2017, new pension and annuity standards in the Superannuation Industry (Supervision) Regulations 1994 set out the required features and terms of innovative retirement income stream products.
Products that meet these standards will meet the definition of a superannuation income stream and will qualify for earnings tax exemptions when they are in the retirement phase.
The new pension and annuity standards remove regulatory barriers to the creation of innovative retirement income streams described in the Government's 2016 Review of Retirement Income Streams. This Review also recommended the development of a coordinated administrative process to streamline the way product providers interact with multiple government agencies.
In response to that recommendation, the Government has initiated a cross-agency process involving four government agencies responsible for aspects of regulation of retirement income stream products:
The cross-agency process seeks to provide a streamlined pathway for product providers to engage with these agencies via a single entry point, reducing the current administrative burden of product providers contacting these agencies separately.
The cross-agency process is designed to complement, not replace, existing processes at each agency.
To contact APRA regarding innovative income stream products:
For further information, including a Process Guide and Submission Form, go to the ATO's innovative retirement income stream website.