SUPERCentral News
This question formed the background to a recently issued Private Binding Ruling – the 2024 PBR (reference details below). The rules of most superannuation funds specify that on the death of a member, the interest or interests of the member will, subject to any binding death benefit nomination, be allocated by the trustee to or amongst a class of eligible beneficiaries of the deceased member.
SMSF borrowing requires expert attention to detail, and our associated legal firm Townsends Lawyers provide the full range of specialist SMSF borrowing services – from strategic advice to SMSF and company establishment, holding trust deed and documentation, stamping implementation and LRBA unwinding. We provide one simple online form so you can select only the services you need, and advice is always only a phone call away.
It is not possible to backdate the commencement of a pension. However, if the trustee and the member have informally agreed that a pension would commence from a particular date in a financial year (typically, 1 July for obvious reasons) and, in fact, pension payments are made in that financial year and the aggregate of the pension payments are sufficient to satisfy the minimum pension drawdown requirement for that financial year (pro-rata’d if the pension commenced after 1 July) – then the pension will have commenced on the first day of the period used to calculate the minimum drawdown requirement as per the informal agreement between the trustee and the member.
ASIC has advised that two directors from Western Australia have been convicted and fined for failing to have a Director Identification Number (DIN) while acting as a director of a company. Both directors were convicted of breaching s1272C(1) of the Corporations Act and were each fined $5,000 and ordered to pay court costs (albeit a small amount).
Well probably “yes” to answer to the song’s rhetorical question. But we need to start at the beginning.
There are three principal differences between a reversion of the pension to the spouse of the deceased member and the issue of a new pension to the spouse of the deceased member.
Each 1 July various superannuation thresholds are updated by the ATO. For the 2024/25 the concessional contributions cap increased from $27,500 to $30,000 and the non-concessional contributions cap increased from $110,000 to $120,000. The CGT contribution cap also increased from $1,705,000 to $1,780,000. But the low rate cap amount which was $235,000 for the 2023/24 financial year did not increase – in fact, it was not even published by the ATO. What is going on?
From purely a superannuation perspective, the 2024 Budget has been a bit of a non-starter. Only two SMSF related announcements were made: the first relating to the deeming test for age pensions and the second relating to payment of SG contributions on Government funded Paid Parental Leave.
Now that the 2023/24 financial year is coming to a close, it will be necessary for individuals receiving pensions from their SMSFs, to ensure that the minimum pension requirement in relation to each of their pensions has been satisfied by 30 June 2024.
This article considers the application of the “catch-up” contribution provisions – when they can be made? How much can be made? And what happens if an excess of “catch up” contributions are made?
First, there is a theoretical maximum catch-up contribution limit. The unused concessional contribution cap arising in respect of a tax year can only be carried forward for at most 5 tax years.
The deeming rates are 0.25% (low rate) and 2.25% (high rate) and the deeming thresholds are $62,600 (single) and $103,800 (Couple- combined).
The income free areas applying for 2024/25 financial year are $212 (single - previously $204) and $372 (Couple combined - previously $360).
The key Super thresholds which will apply for the 2024/25 financial year are as follows:
Concessional contributions are superannuation contributions in respect of which a tax deduction has been claimed whether those contributions are made by the employer (or a related company of the employer) of the member or by the member themself. These contributions are subject to tax in the super fund at 15%.
Age Pension Rates from 20 March 2024 The maximum age pension rates from 20 March 2024 will be
This very issue was the subject of a recent private binding ruling (released 25 March 2024). The taxpayer had for a number of years (actual number was redacted in the published ruling) made personal superannuation contributions for which the taxpayer claimed a tax deduction. The actual amount of each of these contributions was not provided in the published ruling.
If you have funds that are still in catch-up mode or are on different deeds, talk to us about our bulk SMSF conversion program. This will ensure that your trustees have all the necessary powers to comprehensively and legally administer their funds and remain SIS compliant into the future – safeguarding them against potential legal, tax problems and associated penalties.
Contrary to popular belief, simply tearing up or ignoring signed legal documents does not eradicate its effect. The reality is, once a documented agreement is executed (by signature or common seal) it can only be unmade, corrected or amended by the signing of other relevant legal documents.
The Tax Office recently released its long-awaited guidance on how it will treat distributions from a family trust in situations where it believes that someone other than the recipient of the trust distribution will actually obtain the benefit of it, and the reason for distributing to the initial recipient was to save tax.