Govt signals death benefit changes

Assistant treasurer Stuart Robert has used a speech to the Alliance for a Fairer Superannuation System to announce the Government plans to change the law to ensure that death benefits that include life insurance proceeds are not subject to tax when rolled over to a new super fund.

The Minister announced several other technical superannuation changes, including:

  • Amending the law to maintain the treatment of market-linked pensions under the transfer balance cap (TBC) where they have been rolled over because of a successor fund transfer;
  • Fixing the definition of life-expectancy period for innovative income streams to account for days in a leap year;
  • Providing TBC credits and debits for innovative income stream products that are paid off in instalments; and
  • Fixing the valuation of defined benefit pensions under the TBC to reflect when pensions are permanently reduced.

The SMSF Association today welcomed the death benefits proposal, with chief executive John Maroney saying that it was “extremely important” to people who had been waiting for an amendment before dealing with death benefit sums.

While Maroney was also in favour of the TBC and market-linked pension changes, he called on the Government to further consider unresolved technical superannuation fixes as per previous submissions by the Association.




Related Content

SMSFs win on LRBAs

The Government has signalled it will not be moving to tighten up on self-managed superannuation funds (SMSFs) and Limited Recourse Borrowing Arrangeme...Read more

Salaried workers missing out on “alarming” amounts of super

Almost one million working Australians aren’t receiving superannuation and the often-cited cause of self-employment isn’t the only driver, with ne...Read more

Consistent mid-size super funds come out on top

Consistency has seen mid-sized funds come out on top in the first round of the newly launched Superannuation Fund Crown Ratings, a quantitative rating...Read more

Author

Comments

Add new comment