Legacy Super Pensions: A New Window to Exit (Feb 25 Tax Update)
Relevant For:
Individuals with older super pension products, particularly those involving SMSFs.
Key Points:
- Changes from 7 Dec 2024 allow a penalty-free exit from certain legacy pension products.
- Option to withdraw funds fully, start a new income stream or shift to accumulation.
- Social security treatment may change, so check before acting.
- Reserve allocations differ under old and new rules in 2024–25.
- Larger super balances could face extra tax under Division 296 from 1 July 2025.
Full Article:
Legacy pension arrangements that started before 20 September 2007 have long been criticised for limiting choice. Now, recent regulatory changes present a genuine opportunity for self-managed super fund (SMSF) members to re-examine – and potentially exit – these outdated products.
From 7 December 2024, individuals holding a
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