Business Links Australia Pty. Ltd. is a CPA Practice
CPA Australia Logo
Liability limited by a scheme approved under Professional Standards Legislation
Hot Issues
spacer
ATO issues warning after ‘unprecedented’ spike in impersonation scams
spacer
Crypto transactions in ATO sights with new data-matching program
spacer
Government to establish $2 billion fund for small business lending
spacer
Small business corporate tax rates Bill is now law
spacer
ATO to double rental deduction audits to 4,500
spacer
ATO set to issue excess super contribution determinations
spacer
How's Australia going as we approach the election?
spacer
Single Touch Payroll (STP) is compulsory for all small businesses.
spacer
Federal Budget 2019 - Overview
spacer
How the 2019 Federal Budget affects you
spacer
FBT Reminder – Odometer Reading
spacer
‘Big awareness push’ underway as STP deadline approaches
spacer
GST collection on overseas goods at 300% of forecasts
spacer
The problem with getting to 53 years of age.
spacer
Lost Beneficiaries
spacer
New quarterly STP reporting method for closely held payees revealed
spacer
Some Australian figures to help on Budget night.
spacer
Employers hit with rolling SG audits as ATO toughens stance
spacer
Resources to help understand and implement Single Touch Payroll (STP)
spacer
Big fines, prison on the cards as new SG penalties introduced
spacer
Extra website resources and tools is one way we offer you and your family more.
spacer
FBT Exemption for Various Work Vehicles
spacer
Tax payable on expenditure recoupments
spacer
ATO identifies SMSF contravention red flags
spacer
Who wins dispute about taxable income?
spacer
Australia - facts & figures March 2019
spacer
Strategies to handle scam phone calls and problem e-mails.
spacer
Instant asset write-off threshold upped to $25k
spacer
Jail time for GST fraud
Article archive
spacer
Quarter 1 January - March 2019
spacer
Quarter 4 October - December 2018
spacer
Quarter 3 July - September 2018
spacer
Quarter 2 April - June 2018
spacer
Quarter 1 January - March 2018
spacer
Quarter 4 October - December 2017
spacer
Quarter 3 July - September 2017
spacer
Quarter 2 April - June 2017
spacer
Quarter 1 January - March 2017
spacer
Quarter 4 October - December 2016
spacer
Quarter 3 July - September 2016
spacer
Quarter 2 April - June 2016
spacer
Quarter 1 January - March 2016
spacer
Quarter 4 October - December 2015
spacer
Quarter 3 July - September 2015
spacer
Quarter 2 April - June 2015
spacer
Quarter 1 January - March 2015
spacer
Quarter 4 October - December 2014
Quarter 4 of, 2016 archive
spacer
Big-ticket tax set for government review
spacer
FBT – Christmas Parties and Taxi Fares
spacer
Unclaimed Monies - Christmas Project?
spacer
Employee Christmas Parties and Gifts – Any FBT?
spacer
‘Beware the tax man’ eyeing holiday period activity
spacer
Merry Christmas for 2016, a Happy New Year and a prosperous 2017.
spacer
Research reveals key to ‘high-performing’ firms
spacer
Late payments hitting SMEs hard
spacer
Estate planning issues flagged with $1.6m pension transfer cap
spacer
Travel to a workplace: What’s in, what’s out
spacer
New fleet “safe harbour” approach for car fringe benefits
spacer
Struggling Business Turnarounds
spacer
SMSF practitioners told to urgently address TRIS issues
spacer
$20,000 write off is only available for small business, right? Well…
spacer
Do you need an Employment Agreement?
spacer
What does the new withholding tax mean for your clients?
spacer
Domestic (non-marital) Relationships
spacer
Is there a problem with using your company’s assets for yourself?
spacer
SMEs at risk of ‘falling foul’ of ATO
spacer
Scams, fraudsters and viruses
spacer
Got your car log book ready?
Estate planning issues flagged with $1.6m pension transfer cap

 

SMSF practitioners are being urged to consider fresh estate planning issues that have surfaced since the proposed introduction of the $1.6 million pension cap.

         

 

SuperConcepts executive manager of technical services Mark Ellem says some super members will be forced to receive death benefits as a lump sum, as receiving the benefit as a reversionary pension will push them over their $1.6 million pension transfer cap balance under the new reforms.

“That can cause some issues with liquidity when you pay that commutation out,” Mr Ellem said. 

Fortunately, SMSFs will generally have the option to pay the death benefit out as in-specie transfer of assets, he added.

Mr Ellem said it was something practitioners should be flagging with clients, especially when they are discussing the client’s estate planning.

SMSF practitioners should also ensure clients are aware that the balance transfer cap is percentage based rather than amount based.

“You’re going to have to keep track of clients when they commence pensions of what their personal transfer balance cap is, because that’s not necessarily going to equate to the general transfer balance cap,” he said.

Mr Ellem explained that if an individual has used their full $1.6 million transfer balance cap, and the general balance cap amount is later indexed to $1.7 million, the individual will not be able to contribute a further $100,000 because their balance cap has already been 100 per cent used.


MIRANDA BROWNLEE
Monday, 31 October 2016
smsfadviser.com.au