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

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). 

New super laws – the transfer balance cap

New super laws – the transfer balance cap

The transfer balance cap is the new limit on how much a member can have in their pension account and accordingly is a limit on how much a super fund can have in “pension phase”. Income and capital gains are tax free to the extent they are in pension phase. To the extent that a super fund is in “accumulation phase” its income is taxed at 15% and capital gains, on assets held for more than 12 months, are taxed at 10%. 

New super laws – non-concessional contributions cap

New super laws – non-concessional contributions cap

The headline items to this measure is that the non-concessional contributions cap will be reduced from $180K to $100K, the “bring forward rule” will be reduced from $540K to $300K and that members with account balances over $1.6 million will not be able to make non-concessional contributions. But like most of the new measures there are additional complexities to the new non-concessional cap measures.

New super laws - transfer balance cap – transitional CGT relief – cost base reset

New super laws - transfer balance cap – transitional CGT relief – cost base reset

The transfer balance cap measure includes a transitional CCT relief via a cost base reset. This relief is designed to ensure that only capital growth post the introduction of all of transfer balance cap (ie from 1 July 2017) is taxed. However, like all of the new measures the relief is complicated and requires careful consideration prior to 1 July 2017.