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SMSFs & Defined Benefit Pensions - Finalisation at last
Firm deadline set 31 December 2005
Well 31 December 2005 has now been set as the final date. So if a member of a SMSF is eligible to be paid a defined benefit pension their entitlement must arise and the payment terms agreed by 31 December 2005. You can see the criteria about who is eligible here:
http://www.ato.gov.au/super/content.asp?doc=/Content/45333.htm
New "transition to retirement pension"
While the government restricted SMSF pension choices with one hand, it increased them with the other. Now SMSF members can enjoy new "transition to retirement (non-commutable) pensions". These can also be paid by non SMSF superannuation funds.
So SMSF members can now choose to receive an allocated pension or term allocated pension (market-linked pension) as a transition to retirement pension.
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Partner
+61 3 9258 3673
leigh.baring@maddocks.com.au
Qualifications: LLB (Hons), BEc (Hons), Monash University
Leigh is a Partner in Maddocks Tax and Structuring team. Leigh has extensive experience in advising Australian and multinational companies, high net worth individuals, accountants and financial advisers on all areas of taxation law.
Leigh regularly provides advice on:
- structuring of businesses and transactions,
- mergers and acquisitions,
- corporate reorganisations and distributions,
- sale of businesses,
- demergers,
- capital raisings,
- joint ventures and property developments,
- international tax (both inbound and outbound), and
- succession planning and liquidations.
His advice covers both direct and indirect tax considerations.
Throughout his career, Leigh has been at the forefront in developing tax-effective corporate, trust and superannuation structures.
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