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The Draft Pension Ruling: The mouse that roared?
15/08/2011
This Draft Ruling has had a long gestation. Its release has been delayed a number of times.
The implications of the Ruling have generated a number of articles and much comment within the super world.
The ruling deals with three apparently simple questions; what is a pension, when does a pension commence and when does a pension end. The significance of these simple questions is that answers (as proposed by the ATO) have particular tax consequences for superannuation funds, including self-managed superannuation funds. Additionally, the answers proposed by the ATO may require changes to the documentation and processes required to commence a pension.
While the Ruling has been released in draft form, the Ruling does represent the ATO’s considered but not necessarily final view. The ATO could be persuaded to a different view by cogently argued submissions.
SUPERCentral News is not the venue for a detailed discussion of the implications of the Draft Ruling. However, a number of observations on the Ruling are appropriate.
