Tax on pension earnings headed for the scrap heap
Federal Budget / Pensions / SMSF

Tax on pension earnings headed for the scrap heap

#Unworkable, #complex, and #confusing were just a few words that came to mind in April 2013, when the former Federal Treasurer, Wayne Swan and Minister, Bill Shorten announced as part of the Federal Budget the proposed introduction to tax pension income in excess of $100,000 per individual.  The approach by the then Government that this … Continue reading »

Do you really have segregated pension assets?
Pensions / Professionals / SMSF

Do you really have segregated pension assets?

With the growing number of funds paying income streams, the ATO has certainly turned its attention to the issues surrounding the tax exemption available for complying super funds. There are two methods that can be applied when applying tax exemption.  The first is taking a pooled approach to fund assets, where an actuarial tax certificate … Continue reading »

Is there still a need for reversionary pensions?
ATO / Pensions / Professionals / SMSF / SMSF Strategy

Is there still a need for reversionary pensions?

I’ve been a strong advocate for reversionary pensions for some time, in particular in light of the Commissioner’s initial views expressed within TR 2011/D3, which discussed when a pension commences and ceases.  My previous blog post back in September 2010, 5 key reasons why you must always have a reversionary pension set out my rationale why I … Continue reading »

Has your minimum pension increased by 86% for the financial year?
Pensions / SMSF / SMSF Compliance / Trustee education

Has your minimum pension increased by 86% for the financial year?

Whilst much of the attention has focused on superannuation reforms in recent times, 1 July 2013 has seen the re-introduction of the ‘normal’ minimum pension levels for those drawing income streams.  For five years throughout the global financial crisis (GFC), the Government provided much-needed relief for pensioners with a 50% reduction initially in the minimum … Continue reading »

Certainty on tax exemption with super death benefits
Estate Planning / Pensions / Professionals / SMSF / SMSF Compliance

Certainty on tax exemption with super death benefits

The previous announcement by Government to provide tax certainty for deceased estates had been widely applauded by the super industry.  The MYEFO announcement remedied the Commissioner’s views contained within controversial draft Tax Ruling TR 2011/D3 that stated a pension would cease at the member’s death unless automatically reverting to a tax dependant beneficiary.  These measures … Continue reading »

Of course I know when an Actuarial Certificate is required – it’s not Rocket Science!
Pensions / Professionals / SMSF / SMSF Compliance

Of course I know when an Actuarial Certificate is required – it’s not Rocket Science!

No it isn’t, but then again it’s not always as black and white as many of the experienced industry professionals believe. Typically, SMSF administrators use a 2 point method of determining whether an Actuarial Certificate of Income Tax Exemption is required: Were there Pension and Accumulation Accounts in the Fund during the income year? Were … Continue reading »

When does my SMSF need an actuary certificate?
Pensions / Professionals / SMSF / SMSF Compliance / Trustee education

When does my SMSF need an actuary certificate?

With a growing number of SMSFs now drawing income streams, it is important to understand the obligations around calculating a fund’s tax exemption.  With 88% of the total value of fund tax deductions relating to exempt current pension income (ECPI), this area has become a key focus of the Commissioner’s compliance activity each year. As … Continue reading »

WEBINAR: Actuarial requirements for SMSFs
Pensions / Professionals / SMSF / Webinars

WEBINAR: Actuarial requirements for SMSFs

When is an actuarial certificate required for a self-managed super fund?  This is one of the most searched topics on my blog.  With 88% of all tax deductions claimed within SMSFs relating to exempt current pension income (ECPI), the Australian Taxation Office is casting a very close eye over the growing number of tax deductions … Continue reading »

Falling short on your pension payments
ATO / Pensions / Professionals / SMSF / SMSF Compliance

Falling short on your pension payments

Forgetting to take the minimum pension is one of the cardinal sins when it comes to operating your self managed super fund.  This issue was highlighted within draft tax ruling, TR 2011/D3 where the Commissioner states that failure to meet the minimum will mean the fund is not entitled to tax exemption on the income … Continue reading »