Sent: 05-02-2013 09:24:02
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Recent SMSF announcements from the ATO
There have been a number of announcements already this year and later last year. Here's a summary:
a. ATO minimum pension document - the ATO has removed another item from its controversial Tax Ruling 2011/D3; super fund trustees will have some leniency if they don't pay the minimum income.
In reality the leniency is minor for people who have often missed paying the minimum income. I have more to say on this in the Switzer Super Report
b. The ATO have acknowledged that it may be better for SMSF trustees to use a corporate trustee because any change in the trustees/members of a fund won't demand a change in the ownership of assets. "The easiest way to comply with these rules is for your fund to have a company set up solely for the purpose of being the corporate trustee of the fund. If there is a change in directors of the company, you don't have to change the name on the ownership documents for each fund asset as the trustee of the fund is still the same."
It can be quite cheap to set up a special purpose SMSF company and you can pay the annual ASIC fee 10 years in advance and receive a slight discount. The total corporate trustee (including annual fees for 10 years) can be about $100 per year. Personally I think this is a small price to pay
c. From 1 July '13 you may not be able to purchase own occupation insurance or trauma insurance in your super fund because of proposed amendments to the SIS Regulations.
d. The Government has released for comment Income Tax Regulation amendments that would allow a death benefit paid from a pension to be treated as a death benefit. To qualify as a death benefit and have the disposal of assets CGT free the benefit will have a specified period. "The specified period is from the death of the member until as soon as it was practicable to pay the lump sum or commence the new superannuation income stream. This will mean that the superannuation fund will continue to be entitled to the earnings tax exemption in relation to such an amount during this period."
e. ATO data and payment standard - these final version of these have been released. They won't apply to SMSFs where contributions are made by related parties.
f. I can't see the Government reintroducing Reasonable Benefit Limits prior to the election as has been widely reported in the newspapers
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