Welcome to the BETA version of cleardocs.
Switch back to classic

This article is more than 24 months old and is now archived. This article has not been updated to reflect any changes to the law.

clearlaw

SMSFs & Defined Benefit Pensions - Finalisation at last

Earlier this year, the Government extended the transitional relief for SMSFs to provide defined benefit pensions until... at least ... 31 December 2005.

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.

 

Lawyer in Profile

Geoff Musgrove
Geoff Musgrove
Partner
PH: 61 3 9258 3530

Geoff Musgrove is a partner in the Maddocks Commercial team.

Geoff's principal areas of practice are:

  • commercial contracts;
  • mergers, acquisitions and disposals;
  • joint ventures;
  • intellectual property and information technology law;
  • corporate law;
  • business restructuring and insolvency; and
  • franchising.

Geoff acts for a wide range of commercial, government, accounting, manufacturing, professional and rural industry clients.