Amendments to the TAA will also remove the need for the original superannuation plan to give a roll-over benefit statement to each former member, depositor or account holder affected by the transfer. Comparison of key features of new law and current law New law Current law The amount of the contributions The amount of the contributions segment and the crystallised segment segment and the crystallised segment of an individual’s superannuation of an individual’s superannuation interest will no longer be limited to interest is limited to the overall value the value of their interest at any of their superannuation interest at any particular time. particular time. When an involuntary rollover When an involuntary rollover superannuation benefit for a superannuation benefit for a superannuation interest not superannuation interest not supporting an income stream is paid supporting an income stream is paid to a new superannuation plan, the to a new superannuation plan, the contributions segment in the new plan contributions segment in the new plan will include an amount equal to the equals the tax free component of the contributions and crystallised involuntary roll-over superannuation segment in the original plan benefit. immediately before the involuntary roll-over superannuation benefit payment. If an involuntary transfer is paid from If an involuntary roll-over a superannuation interest supporting superannuation benefit is paid from a an income stream, the income stream superannuation interest supporting an ceases immediately to the income stream, the proportions of the transfer. The law does not provide tax free and taxable components of clear guidance on how the tax free the income stream commenced in the and taxable components of the benefit new plan will be the same as the payment to the new plan are income stream in the original plan. determined. Transferring superannuation will Transferring superannuation plans are not be required to give roll-over required to give a roll-over benefit superannuation benefit statements to statement to each former member, members, depositors, or account depositor or account member of the holders for involuntary roll-over plan. superannuation benefits.
Amendments to the TAA will also remove the need for the original superannuation plan to give a roll-over benefit statement to each former member, depositor or account holder affected by the transfer. Comparison of key features of new law and current law New law Current law The amount of the contributions segment and the crystallised segment of an individual’s superannuation interest will no longer be limited to the value of their interest at any particular time. When an involuntary rollover superannuation benefit for a superannuation interest not supporting an income stream is paid to a new superannuation plan, the contributions segment in the new plan will include an amount equal to the contributions and crystallised segment in the original plan immediately before the involuntary roll-over superannuation benefit payment. If an involuntary roll-over superannuation benefit is paid from a superannuation interest supporting an income stream, the proportions of the tax free and taxable components of the income stream commenced in the new plan will be the same as the income stream in the original plan. Transferring superannuation will not be required to give roll-over superannuation benefit statements to members, depositors, or account holders for involuntary roll-over superannuation benefits. The amount of the contributions segment and the crystallised segment of an individual’s superannuation interest is limited to the overall value of their superannuation interest at any particular time. When an involuntary rollover superannuation benefit for a superannuation interest not supporting an income stream is paid to a new superannuation plan, the contributions segment in the new plan equals the tax free component of the involuntary roll-over superannuation benefit. If an involuntary transfer is paid from a superannuation interest supporting an income stream, the income stream ceases immediately to the transfer. The law does not provide clear guidance on how the tax free and taxable components of the benefit payment to the new plan are determined. Transferring superannuation plans are required to give a roll-over benefit statement to each former member, depositor or account member of the plan.
C2014-041_Explantory_Material.docx