SMSF pension fund tax exemption ceases on death

A self managed superannuation fund that is paying an income stream (pension) is exempt from tax including capital gains) on the earnings from assests used to pay the pension. The ATO has issued a draft ruling TD2001/D3 discussing its views on when a pension commences and ceases. The draft ruling confirms that the ATO believes…

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Service trusts – a guide to their safe use.

Many business people use a service trust to supply the use of equipment, staff, premises and administration services to their main business entity. The ATO has been stated concerns about them for decades but has only become active in the last few years. Law Central have put together a useful guide on how to avoid…

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Tax Office offers new tax file numbers to around 3,000 super funds

The Tax Office has written to 3,122 trustees of self managed super funds offering them a new tax file number (TFN) for their funds. The funds’ existing tax file numbers were on a CD of scanned letters being sent to the Tax Office via an authorised (door to door) courier from the company contracted to…

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