SMSFs which are paying pensions have to meet the minimum pension payment requirements, or else both the super fund and the pension recipient can face higher taxes. Some pensions also have to satisfy a maximum pension payment requirement.
The ATO has issued an Interpretative Decision (ATO ID 2015/11) setting out what the tax office deems to be ‘Legally Qualified Medical Practitioners’ for the purpose of a Disability Superannuation Benefit.
The definition of ‘disability superannuation benefit’ is important for several sections of the Income Tax Assessment Act 1997 (ITAA 97), including section 307.145, which modifies the tax free component of the benefit to reflect the time that would have been spent in the workforce, and section 301.40, which sets out the rules for a 15% tax offset.
With the 2015/16 federal budget approaching, what did the Liberal Party promise prior to the last election in regards to superannuation? In a doorstop interview in 2013 Tony Abbott said, “the commitment that I give is that there will be no unexpected adverse changes to superannuation under a Coalition government.” The document… Read More »Liberal party pre-election superannuation promises
Assistant Treasurer Josh Frydenberg has confirmed the Government will drop the changes to Age Pension indexation announced in the 2014/15 Federal Budget. So how is the Age Pension indexed, and what were the announced changes? Age Pension Indexation Indexing the Age Pension is a multi-step process, involving three numbers: CPI: Consumer… Read More »Age Pension indexation changes dropped by Government
The buy-sell agreement
In ATO ID 2015/10: Self managed super fund: Life insurance – Buy sell agreement – financial assistance – sole purpose the ATO sets out a scenario where a member of an SMSF and their brother own shares in a business. Read More »SMSF buy-sell agreement can breach SIS Act: ATO ID 2015/10
Time is running out for SMSF to get ready for SuperStream, if they haven’t already. From 1 July 2015 all businesses should be using SuperStream, the new electronic system for transferring data about superannuation contributions.
Large employers started using SuperStream from 1 July 2014, and should fully comply with the data transfer standard by 1 July 2015. This is also the date for small employers to start using SuperStream, they have until 1 July 2016 to complete their implementation.
The Australian Business Register (ABR) has started to ask a new question of SMSFs applying for an ABN, ‘what is the value of assets held by the fund?’
For several years the ATO has been making it clearer that SMSFs can only apply for registered status, and for an ABN and TFN, once the fund hold assets. However this does cause some issues for SMSF trustees, which can experience difficulties in setting up bank accounts without an ABN or TFN for their fund.