ATO Draft Ruling TR 2011/D3 – Income tax: when a superannuation income stream commences and ceases

July 27th, 2011 by Michael Spakman

Super Fund Pension draft ruling will apply from 2007 – will your Superannuation Pensions comply?

The ATO has recently released draft ruling TR 2011/D3 – Income tax: when a superannuation income stream commences and ceases.  This ruling is proposed to apply from 1 July 2007 and its relevance for advisers and trustees is high, as it has taxation implications for both superannuation funds and their members.

The first aspect of this ruling is the determination of when a superannuation income stream commences.  In order for a superannuation pension to be deemed as ‘commencing’, and consequently in order for the member to receive concession taxation status via their superannuation pension account, there are a number of requirements that must be satisfied.  These requirements are largely manifested in the documentation that needs to be put in place for the pension commencement.

The key requirements of documenting your client Superannuation Pensions include:

  • The terms of the pension need to be set out in the superannuation fund’s trust deed.  This means your superannuation trust deeds need to provide the terms of the pension in detail, not just in a general pension clause.
  • The member and the trustee need to have agreed to the terms and conditions that will govern the superannuation income stream. This means a comprehensive pension agreement must be put in place.
  • The pension documents need to show the requirements for pension payments, partial or full commutations, that pensions can’t be added to, what happens on death and when the pension ceases.
  • SMSF Trustees need to be aware that if any of the payment standards under the Superannuation Industry (Supervision) Act 1994 are not met, the pension will be deemed to not exist.

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Topdocs Super Fund Borrowing Webinars – July 13 and 21 2011

June 23rd, 2011 by Jake Spakman

Get practical information from the experts in Super Fund Borrowing

Register Now!

Duration: 1 hour (45 minute presentation, 15 minute question time)
Cost $55.00

With Super Fund borrowings continuing to increase, your clients will be looking to you for advice and assistance with their SMSF Borrowing transactions.

To provide the best advice to your client’s you need to be aware of the ATO and lender requirements pertaining to these transactions as well as the steps required to ensure your client’s borrowing is a smooth and successful process.

This comprehensive and practical presentation will arm you with the knowledge and tools required to ensure your clients receive the maximum benefit from this investment strategy.

Some of the Topics covered will include:

  • The practical steps required to facilitate the acquisition of an asset via a SMSF Borrowing;
  • The legislative and structural requirements, including the Bare Trust and the Super Fund;
  • The ATO’s views on assets that can be acquired, refinancing, guarantees and more;
  • The requirements of the bank lenders as well as related party loans;
  • Practical issues you should be aware of, such as who should be the Bare Trustee and who should sign the contract for purchase.

If you haven’t participated in a webinar before, a webinar is a presentation over the internet, where you see the presentation on your computer, and listen in via telephone. Read the rest of this entry »

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