The death of a member is a “compulsory cash event”. Super death benefits must be “cashed” as a lump sum or as a pension, or a combination of the two.
Transfer balance is the net amount of capital an individual has transferred to their superannuation retirement phase. We use transfer balance account to track this transfer balance. The principal here is that we are working with the capital amount, so investment earnings and pension payments do not affect the transfer balance account. Transfer balance cap […]
“Total Superannuation Balance” is a new concept introduced in the super reform. It directly affects (1) eligibility for unused concessional contributions cap carry forward; (2) eligibility for non-concessional contributions cap, and bring-forward rules (3) eligibility for government co-contribution and tax offset for spouse contributions (4) eligibility to use segregated method to calculate exempt current pension […]
Draft taxation ruling TR 2011/D3 has finalised as TR 2013/5 and SMSFD 2013/2. Outlined below is a summary of the ruling and the determination, and their implications for SMSF members. TR 2013/5 When a superannuation income stream commences and ceases Commencement of superannuation income stream The ruling states that a superannuation income stream (account based […]
As part of the 2012/13 Mid-Year Economic and Fiscal Outlook (MYEFO), the Government announced that it would amend the law to allow the pension earnings tax exemption to continue following the death of a pension recipient until the deceased member’s benefits have been paid out of the fund. On 4 June 2013, the Income Tax […]