An untaxed element may be generated, resulting in an additional 15% tax being applied to taxable death benefits, where non-tax dependants receive a lump sum payment if a deduction for life insurance premiums or future service (future liability) has been taken. A payment to a non-dependant for tax purposes incurs 15% tax plus medicare levy on the...
Section 295-470 of the ITAA (Future Service Benefit) allows a Fund to claim an income tax deduction on the payment of: a superannuation death benefit; or a terminal illness benefit; or a disability superannuation benefit or a temporary incapacity income stream. The deduction, also known as the Future Liability deduction. It is available irrespective of whether the...
An increased lump sum death benefit, otherwise known as an anti detriment payment, may be made to a spouse, ex spouse (via the estate) or child of any age. The purpose of the payment is to compensate for the effect of contributions tax (the detriment) on the lump sum death benefit paid. There are two calculation...
It is a legal requirement for every SMSF to maintain a written investment strategy. The fund auditor must view this document each year and determine that the investments of the fund have been made in accordance with it. A separate strategy is required if the fund is maintaining reserves and a risk management statement is required...