Technical Paper 95/1
RIMHYPO is a model developed by the Retirement Income Modelling Task Force, a joint project of the Treasury, Department of Finance and the Department of Social Security. RIMHYPO is an individual hypothetical model of the interaction of superannuation accumulations with the tax and social security systems over the lifetimes of hypothetical individuals and couples. That is, it models the accumulation of superannuation benefits, the drawdown of the associated retirement benefits and income streams and all the associated tax and social security interactions for individuals and couples over their lifetimes. It takes account of characteristics such as salary level, work force participation, gender, marital status, home ownership and choices as to benefit type and drawdown patterns.
This paper outlines those provisions of the taxation, social security and superannuation law relevant to our modelling and how RIMHYPO has accommodated those provisions. Although every care has been taken in the compilation of this document, it should not be used as a legal interpretation of the relevant legislation.
Wherever possible, we have included reference to the relevant provisions of the law so readers may look up those provisions if necessary.