Important! Since 1 July 2017, the fund earnings on assets financing a transition-to-retirement pension (TRIP) are no longer exempt from earnings tax. Since 1 July 2017, a TRIP is no longer considered to be in retirement phase.
On 3 May 2016, in the 2016 Federal Budget, the Coalition (Liberal/Nationals) government announced that, from 1 July 2017, it intended to remove the tax exemption on pension fund earnings financing a transition-to-retirement pension (TRIP). The removal of the tax exemption is now law and applies to existing and new TRIPs since 1 July 2017. Superannuation changes creating this law received royal assent on 29 November 2016.