We have received a lot of emails from readers who have expressed their frustration at the unfairness of the proposed pension tax on earnings above $100,000 a year, although a small minority have supported the tax. The common theme for the majority is that many Australians sacrificed and worked … [Read more...]
On 5 April 2013, the federal government announced that it proposes to extend the deeming rules for Age Pension income test, so they apply to new superannuation pensions, from 1 January 2015. According to the government, all products held by pensioners before 1 January 2015 will be grandfathered … [Read more...]
On 5 April 2013, the federal government announced that it intended to introduce a new tax on superannuation pension earnings above $100,000, taking effect from 1 July 2014. You can find the background to this proposed change in our SuperGuide article New tax on pension earnings over $100,000. If … [Read more...]
Note: This list of Q&As was created on 15 April, and will be updated and extended periodically. We will include the date of any future update in this note. An important consideration when reading these Q&As is that the proposed new tax is not yet law, and probably won’t become law until … [Read more...]
Q: I am aware that the minimum amount of pension withdrawal is normally 4% (for under 65s) of the pension account balance (currently 3% for 2012/2013). Is there now any MAXIMUM amount of pension required to be drawn from a super fund? If not, is this still the case for account based pensions, … [Read more...]
Q: On May 1 2013 I am transferring from accumulation phase to pension phase (I turn 65 on 30 April 2013). Is my super fund subject to tax (for 2012/2013 year) on income earned up until the date of conversion, or is no tax payable because the fund has been converted to pension phase? Earnings are … [Read more...]
Q: I wondered if a SMSF pension that was started at the relief rate of 3%, would it then have to increase to the 4% once the relief period expired, or would it remain at 3% because it was started at that rate? The temporary pension payment relief (75% of the usual minimum pension payments) … [Read more...]
If your superannuation pension earns more than $100,000 a year in earnings then expect to be hit with 15% tax on your pension earnings above $100,000. The threshold applies to each individual rather than to each pension/income stream. In a special media conference, held on 5 April 2013, federal … [Read more...]
Q: I am 63. I want to retire next year but I am not sure if I want to access my super benefits yet. I have heard that when I retire, I must withdraw some super benefits each year, otherwise I won’t receive tax-free super benefits. Can you please clarify the rules for me? A: When you retire, you … [Read more...]
Q: I will be 60 in March 2013. Is the compulsory 3% drawdown from my super pension treated on a pro-rata basis for my tax return for the 2012/2013 year, or can I draw it down after March 2013 rendering my super income after 60, tax-free? You ask a popular question relating to tax-free super for … [Read more...]
Q: My husband turns 57 in January. We have a SMSF and he is going to commence pension phase. He is essentially retired and only worked 4 hours this financial year. But what if he decides to work again in six months’ time? The account-based pension allows for lump sum withdrawals which is very … [Read more...]
Congratulations to the Federal Government for applying common sense when dealing with death benefits paid to beneficiaries from a superannuation pension account. The Government, in its 2012/2013 Mid-year Economic and Financial Outlook, has confirmed that investment earnings derived by superannuation … [Read more...]
Q: I recently read your book on DIY Super for Dummies and picked up a number of useful hints. Thanks for writing it. My wife and I have only recently established a SMSF and are on a steep learning curve. We are in the pension phase. Both of us have a large tax free component and a smaller taxable … [Read more...]
Q: I put money into my SMSF in June 2011 from a capital gain. I wasn’t able to tell the fund at that time what it was for as my accountant hadn’t completed the figures so that notice was sent to them in April 2012. As I understood the rules, so long as the money was in the fund at June 2011, I … [Read more...]
Each year, the ATO publishes a list of compliance areas that the regulator intends to target when reviewing SMSFs during the year. Note: The ATO’s compliance approach is to deal with less serious breaches in a collaborative way with the SMSF trustees, by helping them rectify and undo … [Read more...]
