- Continuation of a fund’s tax exemption post the death of a member; and

- Providing an alternate method for determining the tax-free and taxable status of certain superannuation interests.

With these changes stated above, many of the key drivers for establishing a reversionary pensions have now been diminished.

It’s not to say that non-reversionary pension provides a better outcome, but in my view if an individual doesn’t have a reversionary beneficiary in place at the commencement of the income stream, then it’s now no big deal!

The outcome in commencing a new income stream by a tax dependant beneficiary will ultimately end up in exactly the same position as a reversionary pension recipient.

So, should you still consider having reversionary pensions in place? Yes, I certainly think so… if at the very least that you’ve been able to make a seamless transition of an income stream from a member to their dependant spouse or other tax dependant beneficiary.

Aaron Dunn is managing director at the SMSF Academy.