« Age Pension Thresholds from 1 July 2017 | Main | TBC and Flexi Pensions »

Saturday, 01 July 2017



Thanks Brian for a nice thought provoker.

I am also getting some questions regarding converting a capped defined benefit TAP to a new TAP post 30 June 2017 to compress the value counter under the Transfer Balance Cap. There are many articles available on the internet which don't allude to any caution from the ATO but it's a point well worth considering.

It seems to me that the ATO officials are taking a tougher stance on what one may call strategies to minimise superannuation tax. To quote a few examples:

- Their concern with those who set up multiple SMSFs to maximise ECPI

- Use of reserves to tinker with Total Superannuation Balance in either the ability to make non-concessional contributions or in the future carry forward of unused concessional contributions

I find the stance somewhat surprising but Part IVA is somewhat dependant on the regulator's stated intent and industry adherence until tested by AAT / Court.

The previous NTLG and SIRN forums were great to publicly clarify technical matters such as these.

Brian Bendzulla

Rahul - I agree totally about your comment regarding caution. A difficult time until we have some precedent as to the ATO view. Been like this many times before - remember the similar concern with TTR was introduced - the RBL compression technique that has caused some of the current focus on limiting pension concessions etc. My suggestion is that if we not certain we should go to there the opinion really matters ie lodge a private binding ruling request with the ATO. Its not just market-linked. There are uncertainties surrounding 1.06(6) flexi pensions - little official guidance on that one also. I am hoping the SMSF Association will in their contact with ATO be able in the forthcoming technical days to be able to clarify a few of these issues and uncertainties.

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Your comment could not be posted. Error type:
Your comment has been saved. Comments are moderated and will not appear until approved by the author. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.


Post a comment

Comments are moderated, and will not appear until the author has approved them.

Your Information

(Name and email address are required. Email address will not be displayed with the comment.)