The Federal Government has proposed changes to the approach to claiming exempt current pension income (ECPI). Whilst these proposed changes are to commence from 1 July 2021, we are yet to see any draft legislation.
Accurium has just launched our latest research into SMSFs claiming ECPI. Our SMSF retirement Insights Report (volume 9) “The retirement phase tax exemption” explains the current methodology for claiming ECPI, details the proposed changes and looks at how they may be implemented.
The research analyses Accurium’s database of around 65,000 SMSFs to determine how many are likely to impacted by the proposed changes. We also analyse the effect of the introduction of the transfer balance cap on amount of ECPI claimed by SMSFs.
Our Insights report, which includes helpful flowcharts to ascertain if an SMSF has ‘disregarded small fund assets’ and whether an SMSF needs an actuarial certificate, can be downloaded from the link below.
SMSF Retirement Insights – Volume 9: The retirement phase exemption
It’s been over three years since the last major overhaul of how SMSFs approach claiming ECPI. These latest proposals are intended to reduce complexity, but this will depend on the draft legislation, yet to be seen. We are interested in your thoughts on the proposed changes and what changes, if any, you would like to see to the approach for SMSFs claiming ECPI.Please complete our survey by clicking on the link below. We will share the results of our survey in the coming months.
The information in this document is provided by Accurium Pty Limited ABN 13 009 492 219 (Accurium). It is factual information only and is not intended to be financial product advice, tax advice or legal advice and should not be relied upon as such. The information is general in nature and may omit detail that could be significant to your particular circumstances. While all care has been taken to ensure the information is correct at the time of publishing, superannuation and tax legislation can change from time to time and Accurium is not liable for any loss arising from reliance on this information, including reliance on information that is no longer current. Tax is only one consideration when making a financial decision. We recommend that you seek appropriate professional advice before making any financial decisions.