SUPERCentral News
Some of the more interesting points made by the ATO Assistant Commissioner, SMSF Segment are set out in this article.
The ATO has confirmed that complying lifetime pensions can be commuted and converted into market linked pensions. Lifetime pensions are defined benefit pensions which are payable for the life of the member.
A new Interpretative Decision (ID 2015/23) has been issued dealing with death benefits. Essentially the ID confirms that if the death benefits are to be paid as a lump sum they must actually be paid to the recipient.
Real estate can be held while a fund is in pension phase. One advantage of real estate in pension phase is that lease payments may exhibit less variability than other asset classes, which may make them particularly attractive for supporting an income stream.
A Family Court has ordered a husband to revoke any existing BDBN which he had made and has restrained him from making any BDBN which would have the effect of rendering a payment made pursuant to the nomination being an unsplittable payment.
Superannuation Funds have a number of identifying monikers - what are they and what is their function? Listed in this article are some of the names, numbers, etc which operate in super space.
The ATO has advised that during the 2014/15 financial year, it disqualified 660 trustees and issued 92 notices of non-compliance.
The dollar value of penalty units have now increased to $180 each (previously $170). This change is effective on and from 31 July 2015.
An instrument by the ATO last year means that the fund's interest in the bare (holding) trust will not become an in-house asset merely because the loan has been repaid. However we recommend that the trust be unwound and title to the property be transferred to the fund sooner rather than later, and this is why.
The base amount adjustment rate for 2015/16 is 5.3%. This is a very slight reduction compared to the adjustment rate for 2014/15 which was 5.4%. This adjustment rate applies to base amounts in respect of superannuation interests in SMSFs.
Estimated Value of selected property asset classes of SMSFs
These changes will apply from 1 January 2017 and will increase the asset test free level for age pensions and service pensions as well as disability.
To be a member of an SMSF, you must participate in the management of the SMSF. This requires each member to be a trustee or director of the corporate trustee.
The Government has made good its Budget announcement and introduced regulations which substitute a 24 month certification period for the current 12 month period.
The Assistant Commissioner - SMSF Segment has recently commented that the ATO is surprised by the number of SMSFs which are currently providing pensions - typically transition to retirement pensions - when the applicable trust deeds neither contemplates nor permits the trustee to pay such pensions.
The current version of the SUPERCentral Governing Rules - Version 05/15 which applies on and from 20 May 2015 - has now been registered under the Queensland Land Title Act.
Apart from their tax planning your clients need to ensure that all their documentation is in order to support their proposed tax status.
It seems that the ATO is currently undertaking a review of SMSFs who have received trust distributions.
The ATO has recently issued an Interpretative Decision which sets out its view as to when a superannuation fund trustee can claim a deduction for the "future service portion" of a death benefit rather than claiming a deduction for the insurance premium. The Interpretative Decision was released on 5 June 2015.
Estimated SMSFs March 2015 quarter