From smartersmsf.com: The Government has introduced the Social Security (Waiver of Debts – Legacy Product Conversions) Specification 2025, allowing the waiver of debts incurred by retirees who commute asset-test exempt legacy income streams due to a change in their commutability status.

This legislation aims to align social security outcomes with recent Treasury reforms, ensuring retirees are not penalized for adapting outdated products.

Advisers are encouraged to review clients’ legacy pensions to ensure compliance and consider potential commutation under the new rules.