SUPERCentral News

Any super fund member who has commenced an account-based pension since 1 July 2017 (even if the pension has been entirely rolled back to accumulation phase or cashed out) can now view their updated personal transfer balance cap by using the MyGov website to access ATO online services. With the increase in the general transfer balance cap from $1.7m to $1.9m (which took effect on 1 July 2023), super fund members personal transfer balance cap will be increased in proportion to their unused transfer balance cap (also known as “transfer balance cap space”).

Registrations are open for our estate planning course commencing on Thursday 24 August. EP Advantage is: a 10-week online program, maximum 1-2 hrs per week Delivers practical scenario-based training on estate planning Online modules are presented by Townsends Lawyers estate planning specialists Brian Hor and Peter Townsend FAAA (FPA) approved for 18 CPD points Course brochure here. When asked what are the strongest features of the course, previous participants shared: Peter … ‘practical aspect of discussion’ Bethany … ‘capacity for all learning styles to buy in’ Jeremy … ‘using real life scenarios to apply the theory and content’ Christian … ‘course had me mentally categorising my clients’ Narelle … ‘The conversation style was excellent, as was unpacking the case studies each week’ For more information or to register with SUPERCentral please call 02 8296 6266 or email Shadi at shadi@supercentral.com.au.

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 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.

Additional 15% tax on large super balances - the new Division 296 Tax Consultation Paper released!

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).

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.

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…