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.
Anna Tang
Senior Associate
Phone: 03 9288 0555
Anna is a senior associate in the Maddocks Tax & Revenue team.
Anna advises extensively in the following areas:
- direct and indirect tax advice on structuring of businesses and transactions;
- mergers and acquisitions;
- corporate reorganisations;
- sale of businesses;
- joint ventures;
- property developments;
- succession planning; and
- liquidations.
Anna's clientele has been predominately made up of small to medium enterprises ranging from information technology to property developers, private education providers, accountants and financial advisors.
Prior to joining Maddocks in 2006, Anna worked at Ambry Legal practising in tax and commercial law.
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