Since 1 July 2017, individuals are no longer able to treat certain superannuation pension payments as lump sums for tax purposes.

This measure relates to circumstances where an individual under the age of 60 treats the lump sum payment as a minimum pension payment. The pension payment requirements are met, and the individual is able to take advantage of the low-rate cap which enables tax-free payments of the taxable component of a lump sum, up to a lifetime threshold of $200,000 (indexed) for the 2017/2018 year.

Note that this change appears in related regulations, and amends regulation 995-1.03 of the Income Tax Assessment Regulations 1997.