The personal transfer cap of a taxpayer is the transfer cap which applies to the financial year in which the taxpayer first commences a pension to which the earnings tax exemption applies. If Mark commenced an account-based pension on 30 September 2022, his personal transfer cap would be the general transfer cap which applied for […]
pensions
AAT holds that pre-1 Jan 2015 pension has lost its grandfathered status
The Administrative Appeals Tribunal has upheld the decision that a pre-1 January 2015 account-based pension had lost its grandfathered status under the incomes test. The pension commenced in November 2014. As at 31 December 2014 the individual was in receipt of a new start allowance (NSA). Consequently the pension was eligible for grandfathering – and […]
Federal Court protects pension from bankruptcy trustees: Morris' Case
The Federal Court has rejected the attempt by bankruptcy trustees of a deceased super member who argued that a benefit paid to the widow of the deceased super member who was herself a bankrupt was divisible property and so vested in them.
Townsends Lawyers Business Law Brief Newsletter – April 2016
Getting that related party loan back on track It’s about 2 months away from the 30 June 2016 deadline the ATO has set in relation to fixing any non-arm’s length related party loans advanced for limited recourse borrowing arrangements. Key assets and estate planning considerations for businesses This article discusses some of the key estate […]
Poor documentation puts SMSFs at risk of extra tax
The peace of mind of a retiree happily taking a pension from their SMSF could be shattered by the news that their pension was in fact not commenced properly and both they and their fund owe the tax office a lot more money. This is a real prospect if SMSF trustees and their advisers don’t […]
New ATO ruling on paying pension to non-resident member
Does the fact that an Australian superannuation fund pays a pension to a non-resident member jeopardise the fund’s residency status? This was the question recently put to the ATO and their answer is contained in a new Private Binding Ruling 1012821532232. The ruling reviews the law and the ATO’s guideline (TR 2008/9) about what constitutes […]
Advisers are revisiting Commonwealth Seniors Health Card strategies as senior clients start losing ‘their health card’
Seniors with Account Based Pension are losing the health card because of the extended deeming revisions now applied to superannuation account-based pensions. These changes to the deeming are causing a rethink of how assets are held for people who are close to receiving the Commonwealth Seniors Health Card (CSHC). Money held in an insurance bond […]
The annuities vs pensions wars break out
Highlights from Townsends Business & Corporate Lawyers principal Peter Townsend Annuities are risky if the company providing them goes belly up; ‘Budgeter Bob’ is not covered by the government protection to certain deposits with banks. Account-based pensions are risky if the market moves unfavourably. ‘Fast Eddie’ must continue to draw the minimum annual amount required […]