SV just after commutation is the special value, worked out just after the superannuation lump sum is paid,
of the superannuation interest that supports the capped defined benefit income stream.
SV just before commutation is the special value, worked out just before the superannuation lump sum is paid,
of the superannuation interest that supports the capped defined benefit income stream.
The value
of the superannuation interest supporting her income stream is $ 2.5 m.
The debit amount is the value
of the superannuation interest that supported the superannuation income stream just before it ceased to be a superannuation income stream in the retirement phase.
If the value
of all your superannuation interests supporting superannuation income stream / s is likely to exceed $ 1.6 million as at 30 June 2017, you will need to closely monitor the balance of your superannuation interests that support superannuation income streams to ensure that you do not exceed your transfer balance cap initially and / or at the end of 31 December 2017.
A transfer balance debit arises in Justin's transfer balance account on 1 April 2018 equal to 60 % of the value
of the superannuation interest that supports the superannuation income stream on 1 April 2018 ($ 966,000).
[28C] For the purposes of calculating the amount of the credit, you are not required to separately determine the market value
of your superannuation interest as the increase in value is determined by reference to the repayment amount.
Investment returns and payments made to Darius to meet minimum drawdown requirements change the value
of the superannuation interest supporting his pension.
A transfer balance debit also arises in Lizzy's transfer balance account on 1 April 2018 equal to 40 % of the value
of the superannuation interest that supports the superannuation income stream on 1 April 2018 ($ 644,000).
Your transfer balance account is credited with the value
of the superannuation interest that supports the superannuation income stream just before 1 July 2017 (end of 30 June 2017).
One of the consequences of this is that the income earned in respect
of this superannuation interest is not exempt income under Subdivision 295 - F.
The value
of the superannuation interest that supports the death benefit income stream just before 1 July 2017 is estimated to be $ 2,300,000.
[65] The Commissioner is also unlikely to specify a superannuation income stream if the Commissioner is aware that the value
of the superannuation interest [66] supporting that superannuation income stream is likely to be less than the crystallised reduction amount (unless this is your only superannuation income stream).
Where the split is achieved by dividing the superannuation income stream benefits payable from the superannuation income stream, a credit to the full value
of the superannuation interest that supports the superannuation income stream (at the time of the payment split) arises in the transfer balance account of the non-member spouse.
[2] The payment
of the superannuation interest after the member's death is called a superannuation death benefit.
There have been no significant changes in value
of the superannuation interest in the retirement phase prior to the repayment.
Section 90SL — declaration of interests in property Section 90SM — alteration of property interests Part VIIIAA — in respect of orders of injunctions binding third parties — see also section 90TA Part VIIIB — in respect
of superannuation interests
Not exact matches
Long - term low
interest rates have added further complexity to the issue
of superannuation and the aged pension.
Interest in developing alternative sources
of debt for Australian corporates is growing as more
superannuation funds, borrowers and banks di...
Interest in developing alternative sources
of debt for Australian corporates is growing as more
superannuation funds, borrowers and banks discuss ways for retirement schemes to lend directly to companies.
The effect
of the exempt current pension income provisions is preserved for the entire value
of superannuation income stream
interests until:
A member's total
superannuation balance is essentially the sum
of all their accumulation and retirement phase
superannuation interests across all their accounts and funds.
The chart above shows the annualised inflation - adjusted index returns for Australian shares, fixed
interest, and cash on a pre-tax basis, together with how those returns changed with the impact
of taxes for two different types
of taxpayers;
superannuation funds (in accumulation mode) and an individual on the highest marginal tax rate (MTR).
Following a divorce or other relationship breakdown,
superannuation interests may be split as part
of the division
of property.
The concept
of «total
superannuation balance», which commences from the end
of 30 June 2017, is a way to value your total super
interests on a given date.
Against this background, the following sets out the Commissioner's view as to what constitutes a
superannuation interest in relation to the different kinds
of superannuation fund.
An amount that supports a
superannuation income stream that is commenced from an SMSF is treated as a separate
interest from immediately after the income stream commences (that is, once its tax free component and taxable component proportions have been determined)(3) In the case
of multiple income streams commenced from the same SMSF, each income stream commenced gives rise to a separate
interest from the
interest to which each other income stream gives rise.
An
interest refers to a distinct claim
of any kind against a
superannuation fund or RSA provider, whether it be proprietary in character or not.
The Commissioner's view is that the roll - over by a spouse
of a deceased member's death benefit income stream does not change a
superannuation provider's regulatory requirement to cash the deceased member's
superannuation interest as soon as practicable.
Once a
superannuation income stream has commenced and a credit arises in your transfer balance account, subsequent changes in the value
of the supporting
superannuation interest do not affect your transfer balance.
For example, this may occur where the assets
of the
superannuation fund are allocated to specific
superannuation interests that are supporting
superannuation income streams.
The Commissioner has become aware that industry participants have inferred that subsection 307 - 5 (3) provides a mechanism for the spouse
of a deceased member to roll over a death benefit income stream and retain the amounts as their own
superannuation interest without the need to immediately cash - out that benefit.
Where you have more than one
superannuation income stream just before 1 July 2017 (end
of 30 June 2017), your transfer balance will be the sum
of the value
of all
of your
superannuation interests supporting
superannuation income streams just before 1 July 2017 (end
of 30 June 2017).
Similarly, a
superannuation interest that supports a
superannuation income stream that decreases in value because
of investment losses [25] or a drawdown
of superannuation income stream benefits does not have that reduction reflected in your transfer balance account.
Kate has her own accumulation phase
interest ($ 500,000) in the Kate SMSF and wishes to consolidate all
of her
superannuation entitlements.
The crystallisation calculator helps
superannuation funds calculate the crystallised segment
of the tax free component
of a member's
superannuation interest, including any pre-July 1983 component.
Continuing with the facts in Example 3 except that immediately before 1 July 2017 (end
of 30 June 2017) the value
of Alice's
superannuation interest is $ 4.5 million instead
of $ 3.5 million.
That means a
superannuation interest that supports a
superannuation income stream that increases in value because
of investment earnings [24] does not have its growth reflected in your transfer balance account.
This may require you to reduce the value
of your existing
superannuation interests supporting
superannuation income streams prior to 1 July 2017 to ensure you do not exceed your transfer balance cap.
Immediately before 1 July 2017 (end
of 30 June 2017), the value
of Alice's
superannuation interest is now $ 3.5 million due to investment returns and
superannuation income stream payments made to her.
On this day, the
superannuation interest supporting the income stream is valued at $ 1.61 million (this is not a breach
of Justin's transfer balance cap as his transfer balance remains $ 1.6 million).
For the purposes
of the apportionment methodology, it would be reasonable to adjust the 30 June 2018 value
of Ram's
superannuation interest in the retirement phase ($ 400,000) by $ 200,000.
I believe you need to look at other factors such as poor performing
superannuation accounts and low term deposit
interest rates and you'll see why people are chosing property as a huge chunk
of their portfolio.
May I ask a question out
of interest: Isn't it the case in Australia that you can put savings into your
Superannuation account without paying your normal income taxes?
If you are seeking a splitting order in relation to a
superannuation interest, you must attach proof
of value in relation to that
superannuation interest.
(a) the person has, in accordance with section 90MZB
of the Family Law Act, made an application to the trustee
of the eligible
superannuation plan in which the
superannuation interest is held for information about the
interest; and
The proposed orders by consent must contain a provision that each party and the Trustee have liberty to apply in relation to the implementation
of the orders affecting the
superannuation interest.
(b) applies under section 79A or 90SN
of that Act for an order to set aside an earlier order made in relation to a
superannuation interest.
(1) A
superannuation interest is to be treated as property for the purposes
of paragraph (ca)
of the definition
of matrimonial cause in section 4.
means a
superannuation interest prescribed by the regulations for the purposes
of this definition.