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
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
spacer
Correcting GST Errors
spacer
Fuel tax credit rates raised
spacer
ATO set to contact clients for overdue TPAR
spacer
Reminder on Victoria Property Duties
spacer
How Australia is performing.
spacer
Global outlook summary: Down but not out
spacer
Bookkeepers remind on incoming TPRS obligations
spacer
Golden Rules for Deductions
spacer
How's Australia going - vital statistics?
spacer
Tax, SMEs set to be ‘political football’ in 2019 as election nears
spacer
Cap lifted on popular financing option for clients
spacer
Expiry of 900,000 interest-only loans set for January
spacer
Australian Taxation Office (ATO) Scam Alert: Fake Demands for Tax Payments
spacer
Tax Office sounds alarm on popular property strategy
spacer
Our Advent calendar for 2018
spacer
‘Please do not panic’: ATO boss addresses STP concerns
spacer
Stop!! Don't do a paper Budget, use our online budgeting tools instead.
spacer
Employee Christmas Parties and Gifts – Any FBT?
spacer
Behavioural Coaching and your financial plans
spacer
FBT – Christmas Parties and Taxi Fares
spacer
Information needed to be the BBQ expert.
spacer
Tax consequences of trust vesting
spacer
Fringe Benefits Tax (FBT): employees’ private use of vehicles
spacer
ATO to contact clients over bank details
spacer
ATO claws back $850m in unpaid SG in FY 17-18
Article archive
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
Unclaimed Monies - Christmas Project?
spacer
FBT – Christmas Parties and Taxi Fares
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
Is there a problem with using your company’s assets for yourself?
spacer
Domestic (non-marital) Relationships
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