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Changes to pension payment provisions

The Government released draft regulations last week to amend the existing pension payment provisions concerning market-linked and allocated pensions (and life expectancy pensions) which:

Draft regulations to allow more flexibility with various pensions

  • extend the maximum term of the market linked pension (and life expectancy pensions) so that payments can continue until the recipient reaches age 100
  • allow annual payments of market-linked pensions to vary plus or minus ten percent of the amounts calculated under current payment rules
  • update allocated pension drawdown factors in line with up to date life expectancies.

The draft regulations are open for comment until 16 November. Once these draft regulations are finalised it is anticipated that they will come into effect on 1 January 2006 and the Cleardocs Deed will be updated accordingly at that time.


Lawyer in Profile

Leigh Baring
Leigh Baring
+61 3 9258 3673

Qualifications: LLB (Hons), BEc (Hons), Monash University

Leigh is a Partner in Maddocks Tax and Structuring team. Leigh has extensive experience in advising Australian and multinational companies, high net worth individuals, accountants and financial advisers on all areas of taxation law.

Leigh regularly provides advice on:

  • structuring of businesses and transactions,
  • mergers and acquisitions,
  • corporate reorganisations and distributions,
  • sale of businesses,
  • demergers,
  • capital raisings,
  • joint ventures and property developments,
  • international tax (both inbound and outbound), and
  • succession planning and liquidations.

His advice covers both direct and indirect tax considerations.

Throughout his career, Leigh has been at the forefront in developing tax-effective corporate, trust and superannuation structures.

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