Retirement income strategy covenant: draft legislation released

Treasury on 27 September 2021 released the Exposure Draft – Treasury Laws Amendment (Measures for a later sitting) Bill 2021: Retirement income covenant . The Draft Bill with effect from 1 July 2022, will insert a new covenant in the SIS Act to require trustees of a registrable superannuation entity (RSE) to develop a retirement income strategy for beneficiaries who are retired or are approaching retirement. Note that the Treasury position paper for this 2018-19 Budget measure had proposed for the covenant to apply for all trustees, but the Draft Bill will not apply to trustees of self-managed superannuation funds (SMSFs).