Latest Financial Planning News
Hot Issues
Federal Budget 2019 - Overview
How the 2019 Federal Budget affects you
The problem with getting to 53 years of age.
Paying for health care in retirement
Personal super contributions and the 10% test
What investors can expect as key moves affecting markets await
ATO flags PAYG obligations for SMSFs with legacy pensions
Don't just plan for retirement; Plan for your life
Consumers misunderstand types of advice
Budget Time - How's Australia going?
When super isn't compulsory
Investors brace for Brexit - deal or no deal
ATO identifies SMSF contravention red flags
Extra website resources and tools is one way we offer you and your family more.
Tax and estate planning traps flagged with pension restructures
A checklist for a healthy financial year
High-risk LRBAs, TBAR on the ATO’s radar this year
All you need to know about how Australia is going.
Royal Commission report makes super fee recommendations
Four tips for boosting your super balance
New Year resolutions, New Year strategies
Part 4 - The major benefit of ‘behavioural coaching'
3 tips for weathering the market's bumpy ride
Common BDBN ‘pitfalls’ flagged in wake of ASIC action
Case law points to ‘growing importance’ of SMSF document chain
How Australia is performing.
Global outlook summary: Down but not out
Australia - a comprehensive run-down of our vital statistics.
Your guide to smarter holiday reading
Articles archive
Quarter 1 January - March 2019
Quarter 4 October - December 2018
Quarter 3 July - September 2018
Quarter 2 April - June 2018
Quarter 1 January - March 2018
Quarter 4 October - December 2017
Quarter 3 July - September 2017
Quarter 2 April - June 2017
Quarter 1 January - March 2017
Quarter 4 October - December 2016
Quarter 3 July - September 2016
Quarter 2 April - June 2016
Quarter 1 January - March 2016
Quarter 4 October - December 2015
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Quarter 1 of 2015
Articles
ATO urges caution on pensions
Market Update - February 2015
Aussie economy shifts gears as structural changes take hold
The catch 22 of retirement savings
Are there reasons to help the tax man do his job?
Some financial terms explained
Small business paradox
Good financial planning finally has a value: 23% more income in retirement
Market Update - January 2015
‘Incredibly high’ number of trustees hold no life insurance
SMSFs in 2015 Budget’s firing line
Rebalancing resolutions
Hammering away at asset allocation is only part of the retirement income solution
Market Update – December 2014
ATO urges caution on pensions

 

The ATO has said the lack of attention being paid to minimum pension payment requirements is “surprising” .......


..... and has urged trustees and practitioners to be wary of their obligations.




       


In 2012, the commissioner agreed to exercise his powers to allow a super income stream to be taken and a fund to continue to claim exempt current pension income (ECPI) where minimum pension payments are not made in certain circumstances.


In an address to a Tax Institute conference, Matthew Bambrick, the ATO's assistant commissioner, SMSF segment, superannuation, noted that an SMSF may self-assess where the underpayment is small, they have not previously self-assessed the exercise of the general powers or they have made a catch-up payment as soon as possible.


In all other circumstances, however, the fund must apply for the ATO to exercise the general powers and must demonstrate the circumstances for the underpayment were outside the control of the trustee, Mr Bambrick said.


“We’ve finalised 242 cases where SMSFs have requested the exercise of this exception and have allowed only 20 per cent. In the remaining 80 per cent of cases, the funds did not demonstrate that the factors preventing payment were beyond trustee control,” Mr Bambrick said.


One example would be if the circumstance was a medical condition, it was not serious and was short term, with no supporting medical documentation.


Another example involved circumstances that prevented payment being made being experienced by one or some trustees, but not all of them. Mr Bambrick noted all trustees are equally responsible for running the fund.


“Be careful in this area. It’s surprising how many SMSFs and their advisers carefully plan the sale of assets, creating capital gains in the first year the member is in retirement but then forget to pay the minimum pension amount, meaning they place at risk the ability to claim ECPI,” Mr Bambrick said.


 


Written by Katarina Taurian
Thursday, 19 March 2015
smsfadviseronline.com.au




31st-March-2015
 

Investorplan is an Authorised Representative of GWM Adviser Services Limited trading as MLC Financial Planning | ABN 28 056 426 932 | an Australian Financial Services Licensee with its Registered Office at 105-153 Miller Street North Sydney NSW 2060
email: ownyourfuture@investorplan.com.au
General Advice Warning | Terms & Conditions | Legal Statement | Privacy Policy |Site by PlannerWeb