SUPERCentral News
From time to time enquiries are made, which are of general interest, such as an enquiry as to the CGT election which applies for the purposes of the new Division 296 – this is the Division of the Income Tax Assessment Act 1997. Click here to read more.
Now that the season of indexation is upon us, the first significant figure to be indexed is the Transfer Balance Cap. This Cap is the limit on the amount of superannuation which can be transferred from the accumulation phase (that is the taxable phase) to the retirement phase (that is the tax free phase).
The Centrelink deeming rates will be increased to 1.25% (“below threshold rate”) and 3.25% (“above threshold rate”) from, respectively, 0.75% and 2.75%.
The age pension for single pensioners will increase to $1,200.90 per fortnight (from, $1,178.70 per fortnight).
This issue of SC News discusses the passed legislation dealing with Division 296 tax and deals with the more significant impacts of the legislation as it applies to SMSFs.
Click here to see the impacts of Division 296 tax on Trust Deeds/Governing Rules, SMSF Trustees, Members, Advisers and Accountants.
The Missing Piece of Legacy Pension Reform is now in place with the New Guidelines for Asset-Test Exempt (ATE) Income Streams having been issued. The New Guidelines confirm that income streams which had ATE status immediately before the commencement of the Legacy Pension Reform retain that status despite now being commutable.
The Treasurer has announced (Monday 13 October 2025) that the proposed additional tax of 15% on earnings attributable to large super balances is no longer on the drawing board. Instead, a revised, reworked and considerably more super friendly replacement tax, will apply.
Compulsory Superannuation has one negative feature. For individuals with low taxable incomes there is no tax benefit from the “concessional” tax treatment of super contributions.
SUPERCentral News does not normally cover Opposition legislative bills (as they are not in Government and their bills usually go nowhere), however, we must make an exception for Senator Hume’s “Tackling the Gender Super Gap” Bill.
First, and most significant, the deeming rates used for the income means test will increase by 50 basis points......
Assuming the relevant legislative requirements for a limited recourse borrowing arrangement are otherwise satisfied, can the trustee borrow simply to pay the GST on the acquisition of the single acquirable property?
This would be serious news if the Clearing House was a pub for superannuation lawyers to gossip and otherwise exchange technical information. However, it is not. Fortunately, that pub still operates.
A recently released Private Binding Ruling (reference details at the end of the article) has highlighted the need to ensure that the ATO paperwork is correct before you lodge your tax return.
Each 1 July, the deeming rate thresholds and the “tax free area” are indexed with reference to the Consumer Price Index.
When the Federal Parliament was prorogued to facilitate the 2 May 2025 election, all Bills then before Parliament lapsed.
For super members currently trapped in market linked pensions and who wish to cash out or transfer the pension to an account based pension – now is the time to take action.
SUPERCentral has recently released a comprehensive range of SMSF tool kit documents required to record management decisions for Self Managed Super Funds (SMSF).
The Age Pension is indexed twice yearly with effect from 20 March and 20 September. The 20 March 2025 indexation increased the maximum age pension rates as follows:
The ATO has now released the increased superannuation caps which will apply for the 2026 tax year. The more significant caps are set out below.