The ATO will not be issuing a final version of draft Taxation Ruling TR 2013/D7, which dealt with how a superannuation fund should apportion expenses partially gained in earning assessable income.
A recent ATO decision has reinforced the care that must be taken when commuting complying lifetime pensions, as the allocation of the reserves could result in some of the balance being classified as a concessional contribution.
The ATO has clarified the process for a superannuation fund to claim a tax deduction for the future liability to pay death benefits in ATO ID 2015/17 Income tax: complying superannuation fund: deduction for future liability to pay death benefits – section 295-470 of the Income Tax Assessment Act 1997.
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.
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
“We are closely scrutinising SMSF members suspected of avoiding their tax responsibilities by channelling company profits through their SMSF,” said ATO Deputy Commissioner Tim Dyce.
The ATO discusses if a commutation of an account based pension counts against the minimum pension payment amount in the SMSF determination, SMSFD 2013/2: Self Managed Superannuation Funds: does a payment made as a result of a commutation of an account based pension count towards the minimum annual amount required to be paid under paragraph 1.06(9A)(a) of the Superannuation Industry (Supervision) Regulations 1994?,
The ATO has withdrawn SMSFPR 2009/1W which set out how the Self Managed Superannuation Funds Product Rulings system worked. Introduced in 2009, SMSFPRs were intended to allow product promoters to apply for a ruling from the ATO for their SMSF products.
“SMSFPRs were introduced by the Commissioner to provide advice publicly on the prospective application of the SISA and the Superannuation Industry (Supervision) Regulations 1994 (SISR) to particular products in which a number of SMSFs are potential investors,” says the withdrawn ruling.
The ATO has released a determination, SMSFD 2014/1, discussing if partial and full commutations of a transition to retirement account based pension count against the minimum and maximum pension payments.
The ATO says that a partial commutation of a transition to retirement account based pension will count against the minimum pension payment amount, unless “the payment is rolled over within the superannuation system on or after 6 June 2009.” However a partial commutation does not count against the maximum pension payment amount for a transition to retirement pension, “unless the payment was made before 16 February 2008.”
This is contained in SMSFD 2014/1 Self Managed Superannuation Funds: does a payment made as a result of a commutation of an account based pension that is a transition to retirement income stream count towards the minimum and maximum annual payment amounts set out in the SIS Regulations for such a pension?