Super Reforms – Anti-Detriment Abolished
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 reason that large balance members remained with an APRA regulated fund. This was because it was particularly difficult for an SMSF to fund this payment. Its removal represents a significant opportunity for SMSF professionals to gain new business. Importantly, the future service benefit deduction, uniquely available to SMSFs has been retained.
As many of our readers are taking holidays this will be the last of our daily Super Reforms series until Monday, January 16th. We hope you have found them useful to date. Importantly, as we are across the broad range of issues, we are available to assist with your strategic administration requirements at this critical period.
We trust you will have an enjoyable festive break and return refreshed and ready for a very busy new year.