Time limits apply to SMSF trustees appointing SMSF auditors, how long SMSF trustees have to give requested documents to the auditor and how long SMSF auditors have to give the SMSF audit report to the trustees.Read More »SMSF audits: time limits to appoint auditor and give report
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.
With the end of the 2014/15 financial year fast approaching now is a good time to consider some SMSF and superannuation issues.
Minimum Pension Payments
As usual it is important heading up to the end of the financial year to check that at least the minimum pension payments have been made. Failing to make at least the minimum payment can result in the pension being deemed to have ceased at the start of the financial year – leading to tax consequences for the fund and the member. There is, however, a limited concession offered by the ATO, see: SMSF missing the minimum pension payment amount?
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