SUPERCentral News
Death Bed benefit withdrawals is a poignant description of the situation where a member of a superannuation fund makes a request to withdrawal their superannuation benefit as a lump sum before they die. Typically, this is done as the member has no dependants who could receive the benefit tax free. If a superannuation death benefit is paid to the independent adult children of the member, the benefit will generally be taxed at 16.5% (including medicare).
The income free area (the amount of income which an age pension recipient can receive per fortnight before the income reduces the age pension entitlement) has been increased to $204 (previously $190) for single age pension and $360 (previously $336) for a pensioner couple.
Now that the end of the 2022/23 financial year is almost here, superannuation members who are currently receiving pensions need to take certain actions.
In this case a binding death benefit nomination was held to be invalid because it had not been given to the trustee, that is, not given to all the trustees of the fund. The court found that only one trustee had been given the nomination. (Case reference Williams v Williams [2023] QSC 90).
The recent Commonwealth Budget contained 4 material superannuation proposals. The most significant proposal (additional 15% tax on fund earnings on super balances of $3m or more) had been previously announced. The superannuation proposals detailed in the Budget are set out in this article.
The SUPERCentral compliance Tool Kit provides a comprehensive range of over 100+ SMSF populating precedents to assist with compliance administration.
This may be great news but why has it been increased? What is the Work Bank Bonus? How will it work? All the answers are below.
The legislation to significantly increase the cut-off limit for entitlement to the Seniors Health Card has been enacted.
The Superannuation Thresholds applying to the 2023/24 have now been released by the ATO.
Additional 15% tax on large super balances - the new Division 296 Tax Consultation Paper released!
Registrations are open for our estate planning course commencing on Thursday 16 March.
On Monday 20 February 2023, the Government released a consultation paper legislating the objective of (private sector) superannuation. Within hours the criticism of the proposed objective had reached fever pitch.
From 1 January 2023, the age at which you can be a beneficiary of a downsizer contribution has been reduced to age 55 (previously it was age 60 and some years ago it was age 65). This change has been implemented by Treasury Laws Amendment (2022 Measures No 2) Act 2022 (No 84 of 2022).
This cap, which is currently $1.7m, will be increased to $1.9m with effect on 1 July 2023. The increase of $200,000 in the gap is due to indexation.
With these words the Treasurer (and also the Assistant Treasurer and Minister for Financial Services) advised that the Government will impose a special rate of earnings tax of 30% on earnings on super balances of $3m and above. This change, the details of which are yet to be released, will apply from 1 July 2025.
We are pleased to announce our EPAdvantage Estate Planning Program course dates for 2023: - 16 March 2023 - 24 August 2023 We are taking enrolments now for our course commencing in March.
The rules relating to what a self-managed superannuation fund can and cannot invest in are complex and for the uninitiated appear confusing and alien. But there is a basic logic to them.
Is it possible to make a last minute withdrawal before you die and the payment, if made after you have died, still be treated as being tax free? Well Yes – according to a recent private binding ruling from the Commissioner (PBR 1051988780639). But first some imaginary background to set the scene…
And now from the October Budget – all the exciting Super bits (or so we thought).
Superannuation Funds have a number of identifying monikers – what are they and what is their function?