Five Tax & Super Issues This Week

Tony Negline

Five tax and super issues to discuss this week:

a. In last weeks column I discussed some items in the recently released National Tax Liaison Group Superannuation Technical Sub-group minutes for its September meeting.

One issue I mentioned involved the non-payment or underpayment of pension income payments within SMSFs.

This issue is of major importance to many pension paying super funds - large and small.

I have since been told that the ATO is working on two public rulings in relation to pensions. Both are not expected to be released until sometime in 2010.

I discuss this pension paying issue in much greater detail in a forthcoming article in my DIY Super column in The Australian.

b. Super Funds and GST

Last week I also mentioned another issue contained in the NTLG Super Technical Sub-group minutes about whether input taxed credits might be available for financial advice given to the trustees of a Self Managed Super Fund.

The minutes of the Super Technical Sub-group make clear that superannuation and the GST are uneasy bedfellows.

No one really knows if many SMSFs seek to claim an input taxed or reduced input taxed credits (in most cases the administrative record keeping would not be worth the aggro).

The Tax Office has produced a guide about the GST and SMSFs which is a pretty good document.

c. The Superannuation Complaints Tribunal has published its latest quarterly newsletter. It points out that it has "recently ... has received death benefit complaints where it has been discovered that the trustee's claim staking letters and letters advising of decisions in relation to the distribution of death benefits were issued/posted well after the date on the letters".

The problem this creates is that the SCT has strict time limits in which it can review decisions. What date was the notice sent if the trustee letters are not sent on the day they are dated?

d. You might be aware that the government has amended the Small Business CGT Concessions. Some of these changes apply from the 2006/07 year. Other changes don't take effect until sometime in 2009.

Details about these Concessions including these changes can be found in my book, "A How To Book Of Self Managed Super Funds".

e. Finally please consider purchasing a copy of my book. You can look at the contents page at the following link: http://www.atcbiz.com.au/r.php?r=0mjd6ne

Two options are available - once only subscription - $55 inc GST - or an annual subscription will gives you access to all the updates made throughout the year ($120 inc GST).

The book can be purchased at the following link: http://www.atcbiz.com.au/r.php?r=5a4agqb

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