Latest News

Hot Issues
spacer
Access to more resources and tools than most websites.
spacer
Tax Return Mistakes
spacer
SMSF advice appetite strong, says ASIC
spacer
Taxpayers confused by Scott Morrison’s $1,080 tax refund
spacer
Common STP set-up mistakes - ATO
spacer
Proposal to hold directors liable for GST set to pierce corporate veil
spacer
September 2019 - vital statistics for Australia
spacer
Tax Commissioner wants to turn black economy to ‘lighter shade of grey’
spacer
Changes to the Private Health Insurance Statement
spacer
Up to 9 in 10 ‘other’ expenses adjusted as ATO reveals dodgy claims
spacer
Downsizer Super Contribution
spacer
Tax payers to receive beefed up tax returns.
spacer
10 top global corporations since 1998
spacer
Catch-up Contributions
spacer
Life Insurance
spacer
Community tip-offs trigger ATO visits
spacer
Australia at a glance
spacer
2019: Tax Time Checklists - Individuals; Company; Trust; Partnership; and Super Funds
spacer
Small business clients need to be ready for STP by 30 September
spacer
Big four firm outlines new financial year checklist for SMSFs
spacer
Alert - Online Share Accommodation
spacer
ATO flashes warning over $7.2bn car expenses claims
spacer
Vital statistics for our great nation.
spacer
3 out of 4 tax dob-ins are about business
spacer
Tax on compensation received for inappropriate advice
spacer
‘Extra care’ crucial in avoiding ATO spotlight this tax time
spacer
ATO clears up FAQs about Single Touch Payroll
spacer
GST reporting: common errors and how to correct them
spacer
LRBAs, guarantees in need of review after property market falls
spacer
Victorian Property Valuation Cycle
Article archive
spacer
Quarter 2 April - June 2019
spacer
Quarter 1 January - March 2019
spacer
Quarter 4 October - December 2018
spacer
Quarter 3 July - September 2018
spacer
Quarter 2 April - June 2018
spacer
Quarter 1 January - March 2018
spacer
Quarter 4 October - December 2017
spacer
Quarter 3 July - September 2017
spacer
Quarter 2 April - June 2017
spacer
Quarter 1 January - March 2017
spacer
Quarter 4 October - December 2016
spacer
Quarter 3 July - September 2016
spacer
Quarter 2 April - June 2016
spacer
Quarter 1 January - March 2016
spacer
Quarter 4 October - December 2015
spacer
Quarter 3 July - September 2015
spacer
Quarter 2 April - June 2015
spacer
Quarter 1 January - March 2015
spacer
Quarter 4 October - December 2014
Quarter 4 of, 2016 archive
spacer
Big-ticket tax set for government review
spacer
FBT – Christmas Parties and Taxi Fares
spacer
Unclaimed Monies - Christmas Project?
spacer
Employee Christmas Parties and Gifts – Any FBT?
spacer
‘Beware the tax man’ eyeing holiday period activity
spacer
Merry Christmas for 2016, a Happy New Year and a prosperous 2017.
spacer
Research reveals key to ‘high-performing’ firms
spacer
Late payments hitting SMEs hard
spacer
Estate planning issues flagged with $1.6m pension transfer cap
spacer
New fleet “safe harbour” approach for car fringe benefits
spacer
Travel to a workplace: What’s in, what’s out
spacer
Struggling Business Turnarounds
spacer
SMSF practitioners told to urgently address TRIS issues
spacer
$20,000 write off is only available for small business, right? Well…
spacer
Do you need an Employment Agreement?
spacer
What does the new withholding tax mean for your clients?
spacer
Domestic (non-marital) Relationships
spacer
Is there a problem with using your company’s assets for yourself?
spacer
SMEs at risk of ‘falling foul’ of ATO
spacer
Scams, fraudsters and viruses
spacer
Got your car log book ready?
Estate planning issues flagged with $1.6m pension transfer cap

 

SMSF practitioners are being urged to consider fresh estate planning issues that have surfaced since the proposed introduction of the $1.6 million pension cap.

         

 

SuperConcepts executive manager of technical services Mark Ellem says some super members will be forced to receive death benefits as a lump sum, as receiving the benefit as a reversionary pension will push them over their $1.6 million pension transfer cap balance under the new reforms.

“That can cause some issues with liquidity when you pay that commutation out,” Mr Ellem said. 

Fortunately, SMSFs will generally have the option to pay the death benefit out as in-specie transfer of assets, he added.

Mr Ellem said it was something practitioners should be flagging with clients, especially when they are discussing the client’s estate planning.

SMSF practitioners should also ensure clients are aware that the balance transfer cap is percentage based rather than amount based.

“You’re going to have to keep track of clients when they commence pensions of what their personal transfer balance cap is, because that’s not necessarily going to equate to the general transfer balance cap,” he said.

Mr Ellem explained that if an individual has used their full $1.6 million transfer balance cap, and the general balance cap amount is later indexed to $1.7 million, the individual will not be able to contribute a further $100,000 because their balance cap has already been 100 per cent used.


MIRANDA BROWNLEE
Monday, 31 October 2016
smsfadviser.com.au

© O'Brien and Partners 2011 - All Rights Reserved | 91 Station Street, Malvern VIC 3144 | Tel: 03 9509 3911 | Fax: 03 9509 3922