TECHNICAL ARTICLES

In 2013, the ATO released a Taxation Ruling impacting the payment of income streams by superannuation funds, including SMSFs. This technical paper considers how the ATO Ruling applies to SMSFs paying income streams. The Taxation Ruling, TR 2013/5 titled Income tax: when a superannuation income stream commences and ceases, has…

A relatively unpublicised aspect of the 2017 Superannuation Reform legislation is the potential limitation on paying death benefit income streams to children. The introduction of Transfer Balance Caps for superannuation members from 1 July 2017 included limits on the amount of income stream death benefits a dependant could receive following…

Trustees and advisers should consider, given the Centrelink changes due to take effect from 1 January 2015, whether current Transition to Retirement Income Streams will automatically convert to Account Based Pensions. Centrelink changes From 1 January 2015, Centrelink assessment of new superannuation income streams (for income test purposes) will be…

When a Transition to Retirement Income Stream (TRIS) can be commenced is well known by advisers, what appears to be unclear to some is the process to lift the 'lid' on the restrictions applicable to a TRIS. What is a Transition to Retirement Income Stream? A TRIS, as it is…

The Government legislated to provide tax relief for superannuation funds, following the death of a pension recipient, which explains the ATO’s delay in producing a final version of its draft Taxation Ruling TR 2011/D3. We look at how the new regulations may impact super funds and the beneficiaries of deceased…

This technical paper considers the timing of automatic pension reversions, following the release of TR 2013/5, the finalised version of TR 2011/D3 which engendered debate and differing points of view amongst advisers. Following the release by the Australian Taxation Office (ATO) of its draft Taxation Ruling TR 2011/D3 ‘Income tax:…

The ATO has announced its intention to provide closer scrutiny over SMSFs paying pensions. This article takes a closer look at income and capital gains generated by assets supporting pensions. One area of common misunderstanding relates to the calculation of the tax free portion of income and capital gains generated…

Legislative requirements, audit issues even potential challenges from disgruntled beneficiaries need to be considered when preparing the documentation of a SMSF income stream. With SMSF pension documentation, consideration needs to be given to legislative requirements, audit issues, and also ensuring that documentation is in order in the event of common…