ATO take ‘gloves off’ on overseas income
The ATO has again flagged that underreporting of foreign income is an issue, but this time the gloves are off.
Proof of life certificates
‘Proof of life’ certificates required for overseas pensioners One of the stranger pieces of legislation to be introduced into Parliament last month is an attempt to ensure that overseas welfare recipients over the age of 80 are in fact, alive. There are approximately 96,000 people permanently living overseas who currently receive an Australian social security…
Australian super reform – common questions
There is currently a lot of discussion on these super changes and what you should do. We outline below some common questions for your reference. Please note these comments are not intended to be advice and they will not have application in all circumstances. It is critical that you seek specific advice before finalising any…
Defined Benefit Pensions
For the purposes of the $1.6m pension cap (transfer balance cap), defined benefit pensions (e.g. lifetime pensions historically received in the public sector and some private sector legacy pensions, such as market linked pensions) will be subject to special valuation rules as these pensions do not generally have an underlying capital balance (ie they are…
Transition to Retirement Pensions
Transition to retirement pensions will not qualify for any earnings tax exemption from 1 July 2017. All earnings on transition to retirement pension assets will be taxed at the standard super fund tax rate of 15%. A transition to retirement pension is generally a pension received by someone between the ages of 55 to 65…
Capital Gains Tax (CGT) relief
CGT relief The new rules include CGT relief for those who will be required to unwind existing pension arrangements. The CGT provisions effectively deem a disposal and reacquisition as at 30 June 2017, meaning any unrealised gains on existing pension assets will generally not be taxed on a disposal following commencement of the new rules.…
$1.6m Pension Cap (Transfer Balance Cap)
There will be a $1.6m cap on the amount of capital that a person can transfer into retirement products such as superannuation, pensions and annuities. The transfer balance cap applies from 1 July 2017 and applies to both existing and new pensions. The cap is an individual cap and applies on an individual-by-individual basis taking…
Superannuation Budget changes effective 1 July 2017
Government’s new super tax changes announced in May 2016 Budget now law. The new superannuation rules are effective from 1 July 2017 and as a result those funds with pension balances greater than $1.6m will pay a 15% tax on the investment earnings on the amount in excess of $1.6m. In addition there will be…
Pension Balance Transfer Cap ($1.6m) – how it works
The government recently released the second tranche of proposed superannuation changes covering the pension transfer balance cap, concessional contribution changes, catch-up concessional contributions and the removal of the earnings tax exemption for transition to retirement pensions. We provide the following information on the issues surrounding the pension balance transfer cap. What is the pension transfer balance…