Law Council of Australia

Legal Practice Section

Legacy Retirement Product Conversions and Reserves – Draft Regulations

The Superannuation Committee of the Legal Practice Section of the Law Council of Australia provided a submission to Treasury in response to the Exposure Draft Treasury Laws Amendment Instrument 2024: Self-managed superannuation fund – legacy retirement product conversions and reserves (the Amending Regulations).

The Committee notes that the Exposure Draft Explanatory Statement includes the following commentary on the purpose of the Amending Regulations:

The purpose of the Treasury Laws Amendment Instrument 2024: Self-managed superannuation funds – legacy retirement product conversions and reserves is to relax commutation restrictions for a specified range of legacy retirement products and create a more flexible avenue for allocations from superannuation reserves. This will allow individuals to exit products that are no longer suitable for their circumstances, remove barriers that currently prevent the closure of obsolete funds and legacy products, and allow for the allocation of reserves that no longer serve an ongoing purpose. The measure applies to legacy lifetime, life expectancy and market-linked superannuation income stream products that commenced prior to 20 September 2007, or were commenced as a result of a conversion of an earlier legacy product that commenced prior to that date (legacy products).

The Committee supports the objectives of the Amending Regulations as stated. Comments are confined to consistency with the stated objectives.

Read the full submission below.

Last Updated on 15/10/2024

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