Tax Exemption for SMSFs for Earnings on Assets Supporting Pensions Continues After Death

 

Tax Exemption for SMSFs for Earnings on Assets Supporting Pensions Continues After Death

Tax Exemption for SMSFs for Earnings on Assets Supporting Pensions Continues After Death

The Federal Government’s midyear Economic and Fiscal Outlook’s inclusion of a tax exemption for Self-Managed Superannuation Funds (SMSFs) will provide a great boost of confidence to the sector, according to DBA Lawyers. The Government will amend the law to allow the tax exemption for earnings on assets supporting superannuation pensions 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. It will have effect from 1 July 2012 and is estimated to have a small but unquantifiable cost to revenue over the forward estimates period. The change will benefit the beneficiaries of the dependents of deceased member’s estates by allowing superannuation fund trustees to dispose of pension assets on a tax-free basis to fund the payment of death benefits. Further discussion about the need for nominations is included, as writes Krystine Lumanta, in Morningstar on 1 November 2012 READ MORE

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This entry was posted in Pensions / Income Streams, Retirement Planning, SMSF Investing, Super Law & Compliance, Superannuation General and tagged , , , , , , , , . Bookmark the permalink.

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