Tax certainty for deceased estates of SMSF pensioners

The government will amend the law to allow the tax exemption for earnings on assets supporting superannuation pensions to continue following the death of a fund member in the pension phase until the deceased member’s benefits have been paid out of the fund. This change will have effect from 1 July 2012. The super law…

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Govt fixes SMSF death benefit slug

When a superannuation fund is in pension mode it does not pay tax on income or capital gains derived from those assets used to provide the pension. The ATO earlier this year caused much angst when it determined that upon the death of a member, the fund is no longer providing a pension to that…

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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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