The announcement of the removal of the tax exemption for fund earnings derived from assets supporting a transition-to-retirement pensions (TRIP) shocked many sections of the financial services industry and certainly caught out many older workers currently using TRIPs.

Effective since 1 July 2017, the parliament removed the tax-exempt status of super fund earnings supporting a transition-to-retirement pension (TRIP). Until 30 June 2017, the investment earnings on super assets financing a TRIP were exempt from tax.

The removal of the tax exemption affects pre-existing recipients of TRIPs and future recipients of TRIPs. This measure will raise $650 million over 4 years. For more information on TRIPs and the changes, see the following SuperGuide articles:

Taking effect from 1 July 2017, the government has removed the tax-exempt status of earnings supporting a transition-to-retirement pension (TRIP). For more information see SuperGuide article Less tax, more super? A transition-to-retirement pension is no longer the answer.