Expanding the range of capped defined benefit income streams

The Minister for Revenue and Financial Services, the Hon Kelly O'Dwyer MP, has released draft regulations and explanatory material to expand the range of capped defined benefit income streams under the transfer balance cap.

The regulations are intended to ensure pensions that cannot practically commute in response to the transfer balance cap are treated as capped defined benefit income streams under the transfer balance cap. This allows large pensions to be subject to additional tax instead of forced commutation.

All interested parties are invited to make a submission by 4 May 2017.