Specifically, the Government said that it will amend the tax law to allow the tax exemption for earnings on assets supporting superannuation income streams to continue following the death of a fund member in the pension phase until the deceased member's benefits have been paid out of the fund. The proposed changes are intended to provide tax certainty for deceased estates by allowing superannuation fund trustees to dispose of pension assets on a tax-free basis to fund the payment of death benefits.
Details on superannuation income streams and the tax exemption for fund assets set aside to pay current pensions are outlined in Thomson Reuters Australian Superannuation Handbook 2012-13 and the Australian Financial Planning Handbook 2012-13.
Source: This article was first published in Thomson Reuters' Tax & Accounting Insight. To subscribe to Tax & Accounting Insight, or for more information, please:
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