Federal Budget 2018/19 Proposals

4. From 1 July 2020, the Government will introduce a ‘retirement income covenant’ requiring superannuation trustees to formulate a retirement income strategy for their members and offer ‘Comprehensive Income Products for Retirement’ (CPIRs), which provide an income for life, regardless how long the member lives. The proposal has not yet been legislated.

5. From 1 July 2019, the annual audit requirement for self-managed superannuation funds will be changed to a three-yearly for those with a history of good record-keeping and compliance. The proposal has not yet been legislated.

These changes are still only proposals at the time of writing (1 July 2019) and legislation needs to be passed to make them effective. Importantly, changes could be made or the proposals may be rejected.