The Draft Pension Ruling: The mouse that roared?

This Draft Ruling has had a long gestation.  Its release has been delayed a number of times.

The implications of the Ruling have generated a number of articles and much comment within the super world.

The ruling deals with three apparently simple questions; what is a pension, when does a pension commence and when does a pension end.  The significance of these simple questions is that answers (as proposed by the ATO) have particular tax consequences for superannuation funds, including self-managed superannuation funds.  Additionally, the answers proposed by the ATO may require changes to the documentation and processes required to commence a pension.

While the Ruling has been released in draft form, the Ruling does represent the ATO’s considered but not necessarily final view.  The ATO could be persuaded to a different view by cogently argued submissions.

SUPERCentral News is not the venue for a detailed discussion of the implications of the Draft Ruling.  However, a number of observations on the Ruling are appropriate.