SMSF Retirement Insights and ECPI | Accurium

Accurium's General Manager, Doug McBirnie, will present the findings of Accurium’s latest research into financial the health of the SMSF sector. The paper looks at the performance of SMSFs over the year and how that affects trustees’ preparedness for retirement, with some surprising results. 

Next Melanie Dunn will discuss how to claim ECPI in 2016-17 and future years. The recent superannuation reforms around CGT relief and the transfer balance cap have introduced further complexities to the calculation for the 2016-17 income year. In addition, the ATO has confirmed their view on segregated pension assets which will affect tax returns for 2017-18 onwards. In this session Melanie will provide you with the facts, and use case studies to explain how SMSFs can claim exempt income.

Update November 2017: Some SMSF practitioners have expressed the view that commutations can be documented to occur at the ‘end of day’ on 30 June after income is earned. The ATO concession for FY17 and prior years would still allow funds in this position to use the unsegregated method for all income earned during the year. Our usual assumption when calculating the tax exempt proportion for our actuarial certificates is that transactions occur at the start of each day. However, if you believe that a fund’s documentation and income meet the requirements for an ‘end of day’ commutation then we are happy to take this into account in our calculations.

Where a fund was solely in pension phase until the point of the commutation at the ‘end of day’ on 30 June it may also be possible to use the segregated method to claim ECPI for all income earned during the year. If taking this approach there may be no need to obtain an actuarial certificate. 

Our discussions with the ATO suggest they may accept the approaches above in the right circumstances. Ultimately it is a question of tax law and if you are unsure regarding the circumstances for a particular fund then we suggest you obtain legal advice. Unfortunately, Accurium is not in a position to provide this advice for you.