In the lead up to the review there were a lot of discussions around cutting superannuation tax concessions ... as if they have not done that enough recently with the reduction of allowable contributions.

No changes have been made to the way super funds are taxed, how pensions are paid or taxed. This is comforting news for retirees, and others building up their nest eggs in a SMSF. The fears that the SMSF members had about the Government once again changing the rules mid stream and increasing taxes have now disappeared.

The Treasurer actually announced some long overdue changes that go against a recent tax office ruling in relation to pension concessions for beneficiaries of deceased estates.  The announcement states that the pension of a person who dies will only cease to be a pension when all the death benefits are paid to beneficiaries. This means that all the fund assets of a member who dies whilst in pension phase will remain in pension phase until the assets have been sold or transferred to beneficiaries. Thus avoiding the impost of up to 15% tax on the increase in super fund asset value of a deceased person. Pension assets will effectively be disposed of tax free. This is a major and welcome concession for SMSF’s.

For more information on SMSFs contact Terry Dewing on 9526 1211 or email terry@sullivandewing.com.au.