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Sladen Snippet – ATO to extend transitional period for new SMSF TBAR reporting regime

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Sladen Snippet – ATO to extend transitional period for new SMSF TBAR reporting regime

As reported in our previous Sladen Snippet, the Australian Taxation Office (ATO) is currently developing a new self managed superannuation fund (SMSF) event based reporting regime to be called the Transfer Balance Account Report or TBAR.

Sladen Snippet – Are actuarial certificates required if a pension is commuted on 30 June 2017

Sladen Snippet – Are actuarial certificates required if a pension is commuted on 30 June 2017

Self managed superannuation funds (SMSFs) are not required to obtain an actuarial certificate if 100% of the SMSF is in “pension phase” for 100% of the year. That is, the SMSF uses the segregated method for the whole year. But what happens for SMSFs that use the segregated method for the 2017 year but, because of the transfer balance cap measure, have to commute back their pensions to $1.6 million by 30 June 2017?

Sladen Snippet - further changes to TRISs – qualifying for retirement phase and the cost base reset

Sladen Snippet - further changes to TRISs – qualifying for retirement phase and the cost base reset

The Treasury Laws Amendment (2017 Measures No. 2) Bill 2017 has been tabled in Parliament. The Bill proposes to make two important changes to transition to retirement income streams (TRISs). Firstly, to allow certain TRISs to qualify for “retirement phase” and, secondly, to ensure TRISs qualify for the cost base reset.

Sladen Snippet - many SMSFs to face “monthly” TBAR reporting regime from 1 July 2017

Sladen Snippet - many SMSFs to face “monthly” TBAR reporting regime from 1 July 2017

As part of administering the new transfer balance cap measure, the Australian Taxation Office (ATO) is currently developing a new self managed superannuation fund (SMSF) event based reporting regime. This regime is likely to be in the form of a report to be called the Transfer Balance Account Report or TBAR. At this stage, the reporting regime is expected to be as follows:

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Sladen Snippet – death benefit pensions may be commuted into accumulation prior to 1 July 2017

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Sladen Snippet – death benefit pensions may be commuted into accumulation prior to 1 July 2017

There is some good news and some bad news with the ATO’s release of Practical Compliance Guide PCG 2017/6. The good news is that spouses in receipt of death benefit pensions may commute their death benefit pensions in excess of the transfer balance cap back into accumulation before 1 July 2017. The bad news is that this concession does not apply to non-spouses and won’t apply after 30 June 2017.

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Sladen Snippet – ATO gives guidance on how to commute pensions by 30 June 2017 for the transfer balance cap measure

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Sladen Snippet – ATO gives guidance on how to commute pensions by 30 June 2017 for the transfer balance cap measure

The Australian Taxation Office (ATO) has released Practical Compliance Guideline PCG 2017/5 which gives guidance as to how trustees of self managed superannuation funds (SMSFs) can commute pensions by 30 June 2017 in order to comply with the new transfer balance cap measure.

Sladen Snippet - do super fund deeds and pension documents need to be updated pre 1 July 2017?

Sladen Snippet - do super fund deeds and pension documents need to be updated pre 1 July 2017?

With the new super laws commencing from 1 July 2017, advisors and trustees of self managed superannuation funds (SMSFs) are starting to consider whether they need to update their SMSF trust deed or their pension documents.

Sladen Snippet – ATO releases FAQs on the LRBA safe harbour rules

Sladen Snippet – ATO releases FAQs on the LRBA safe harbour rules

The ATO has released answers to frequently asked questions (FAQs) on the ATO’s safe harbour rules for related party limited recourse borrowing arrangement (LRBA) loans to super funds. The safe harbour rules are contained in PCG 2016/5 and have been discussed in a previous snippet. 

New super laws – the death of transition to retirement income streams?

New super laws – the death of transition to retirement income streams?

There seems to be some confusion about the fate of transition to retirement income streams (TRIS). TRISs will not be abolished from 1 July 2017. Rather, they will no longer qualify for “pension phase” (or retirement phase under the new terminology).