When an account-based income stream fails to meet the minimum pension standards required under Subregulation 1.06(9A) of Superannuation Industry (Supervision) Regulations 1994 (SISR) it will not have met the requirements of being a superannuation income stream in that year.
The 2019 financial year has ended, and it is now time to start thinking about finalising fund accounts, audits and submitting the SMSF tax return. A part of this process will be determining if the fund has ECPI, and if so, how much. For an unsegregated fund this will require an actuarial certificate. This article will look at the certificate application process and some of the issues that we see when clients submit their application.
SMSF couples need $2 million in savings at retirement to be confident of affording a $100,000 p.a. lifestyle in retirement. The good news is that 40% of 65-year-old SMSF couples have saved enough in their funds to meet this aspirational lifestyle.
In response to your feedback from our recent client survey we have implemented three new features in our actuarial certificate application process.
The original guidance in our view was relevant to both a new death benefit income stream taken by an eligible beneficiary and a reversionary income stream that is paid to a beneficiary upon death of the original pensioner.
Recently there has been some confusion around whether a death benefit income stream which failed to meet the minimum pension standards would be required to pay out the entire amount as a death benefit lump sum in order to meet the cashing requirements of paying a death benefit.
For over a decade, the SMSF industry’s interpretation of existing legislation was that assets could only be segregated to support an income stream where the trustees of a superannuation fund had elected to do so. Following the 2016 Super Reforms, the ATO revisited its interpretation of the legislation and took a contrary view to the prevailing practice in the industry.
To accommodate deemed segregation for the 2017-18 financial year onwards our actuarial certificate application form needed major updates and as a consequence the popular uniform transaction feature needed to be removed.
Accurium provide a wealth of technical information for our clients through the TechHub. This includes the latest articles, research, calculators, webcasts and CPD accredited webinars. But did you know that you don’t have to request actuarial certificates to access all of this information and get free access to CPD?
As we head towards the 2018 income year deadline for SMSF tax returns on 15 May 2019, and into the time of year when you pull out all those complex SMSF cases left to last, we thought it an opportune time to highlight one of the key features of Accurium’s actuarial certificate system - how to do an amendment free of charge.
A key change made was to how you enter a pension commencement or pension commutation in the online form. If you haven’t been able to find where to enter this information on our new form you are not alone. For those of you coming via platforms the form is pre-filled for you, however for those coming direct we wanted to provide you with some additional assistance in finding where to enter this type of transaction.