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.


Superannuation pensions upon death of member: Government to provide tax certainty

Among the various tax and superannuation changes contained in the 2012-13 Mid-Year Economic and Fiscal Outlook (MYEFO), released on 22 October 2012, the Government has indicated that it will move to provide tax certainty for superannuation funds upon the death of a member in receipt of a superannuation income stream.

Stuart Jones, Thomson Reuters

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:

More Cleardocs information on related topics

You can read earlier Clearlaw articles on a wide range of SMSF topics here.

Order SMSF related document packages


Lawyer in Profile

Andrew Wright
Andrew Wright
Senior Associate
PH: 61 3 9258 3362

Andrew is a lawyer in the Maddocks Tax & Revenue team.

Andrew provides advice on:

  • structuring of businesses and transactions;
  • mergers and acquisitions;
  • corporate reorganisations;
  • sale of businesses;
  • fixed and discretionary trust deeds; and
  • international tax structuring.

His advice covers both direct and indirect tax considerations.

Prior to joining Maddocks, Andrew was a tax consultant at a Big 4 Chartered Accounting Firm.