Just be aware that, for unsegregated funds, the CGT reset is only available for adjustments made on 30th June 2017. This means that such funds must have a member with more than $1.6m in pension or with a transition to retirement pension on that date. If members have taken measures to deal with these matters by ceasing a transition...
The assault on limited recourse borrowing arrangements flagged in the draft amendment has been included in the budget but with a little more enthusiasm. The proposal was that the counting of the loan balance against a member’s total super balance would begin from the date of royal assent of the enabling legislation. The budget has moved...
Somewhere in the bowels of Government the gremlins are hard at work dreaming up new and totally unproductive ways to occupy our time. The latest result, PCG 2017/5, is a requirement for SMSF trustees to enter into a written, irrevocable agreement with a member, by 30th June this year, to commute the member's pension balance over...
Last night Treasury released a rather nasty proposed amendment for hasty public comment. It is a very significant amendment. It was issued on a Thursday night with all submissions required by next Wednesday. Monday is a public holiday in most States. The amendment focuses on limited recourse borrowings in two ways. Transfer Balance Credits Where a fund contains...
Due to the impact of the super reforms there are many additional items that need to be considered prior to the end of this financial year. One of the biggest items is the CGT reset. If your client is eligible, irrespective of whether you think they can use the the segregated or the proportional approach, they should have maximised the time...
Over the next month the ATO plan to send letters, emails, SMSs and carrier pigeons to individual members who they believe may be affected by the super reforms. This will include those with balances over $1m, any TRIS recipients, defined benefit pensioners and anyone who made a concessional contribution last year. That's a lot of people. The communications will...
A number of articles have appeared in the financial press concerning the ATO's view that a transition to retirement income stream does not convert to a standard pension once the necessary triggers of release have occurred. This is contrary to long standing practice. An obvious consequence is that all pensions that commenced as TRISs, but have now become...
Kelly O’Dwyer has described the inclusion of limited recourse borrowing within the total super balance and the transfer balance cap as a minor and technical change to the super reform measures. This is a ridiculous statement. There is nothing minor in this measure. As the total super balance is applied to a member’s eligibility to make non-concessional...
The reform Regulations have now been finalised. They are largely unchanged form what was initially proposed. A couple of subsequent discussion topics have been abandoned. Notably the notion that actuarial certificates will no longer be required and that complying pensions could be commuted where they contributed to a transfer balance cap issue. Neither of these will proceed...
From 1 July 2017, the Government will remove the anti-detriment provision which allows superannuation funds to claim a tax deduction for a portion of the death benefits paid to eligible dependants. A payment may still be made until 30 June 2019 provided the member died no later than 30 June 2017 This benefit was often the only...