The draft regulations expand on and support the implementation of the 2021–22 budget measure to allow individuals to exit certain legacy retirement products.

Then, the government first announced the proposal to allow individuals to exit legacy pensions, together with associated reserves. However, the proposal has remained in limbo to date.

According to Minister Jones, the idea behind the latest draft regulations is to remove barriers so that individuals can exit from these products at any stage over the next five years; and help retirees access capital more easily that would otherwise be locked in the system.

“Our government will always ensure that the superannuation system delivers income for a dignified retirement for all Australians,” the minister said.

“The government welcomes feedback from stakeholders on the draft regulations and explanatory statement.”

The draft regulations apply to legacy lifetime, life expectancy and market-linked superannuation income stream products that commenced before 20 September 2007 or commenced as a result of a conversion of an earlier legacy product that commenced before that date.

The consultation closes on 8 October 2024.