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  • Advice under development – superannuation issues

    We are developing advice and guidance on the following superannuation issues.

    See also

    [3938] Superannuation income stream

    Title
    Addendum to Taxation Ruling TR 2013/5
    Income tax: when a superannuation income stream commences and ceases

    Purpose
    TR 2013/5 has been impacted by the legislative amendments flowing from the 2016 Budget announcement of the transfer balance cap, which limits the superannuation interests that a person can have in retirement phase. The Addendum will update the legislative references in the Ruling as a result of these amendments as well as address other amendments – including to the definition of superannuation income stream benefit.

    Expected completion
    To be advised

    Comments
    Completion of this Addendum has been delayed to enable further consideration of issues relating to reversionary pensions.

    Contact
    PAGSEO@ato.gov.au

    [3971] Self-managed super funds – rectification directions

    Title
    Final Law Administration Practice Statement
    Rectification direction for contraventions to the Superannuation Industry (Supervision) Act 1993

    Purpose
    This final practice statement will provide guidance to ATO staff on the relevant matters to be considered when deciding whether to give a trustee or a director of a body corporate that is a trustee of a self-managed super fund a written rectification direction under section 159 of the Superannuation Industry (Supervision) Act 1993.

    Expected completion
    Mid 2021

    Contact
    PAGSEO@ato.gov.au

    [3972] Self-managed super funds – education directions

    Title
    Final Law Administration Practice Statement
    Education direction for contraventions of the Superannuation Industry (Supervision) Act 1993

    Purpose
    This final practice statement will provide guidance to ATO staff on the relevant matters to be considered when deciding whether to give a trustee or a director of a body corporate that is a trustee of a self-managed super fund a written education direction under section 160 of the Superannuation Industry (Supervision) Act 1993.

    Expected completion
    Mid 2021

    Contact
    PAGSEO@ato.gov.au

    [3975] Super benefits in breach of rules

    Title
    Final Law Administration Practice Statement
    The Commissioner’s discretion to exclude illegally accessed superannuation benefits from assessable income

    Purpose
    This final practice statement will provide guidelines on the Commissioner's discretion as set out in subsection 304-10(4) of the Income Tax Assessment Act 1997 to not include a super benefit in assessable income.

    Expected completion
    Mid/late 2021

    Contact
    PAGSEO@ato.gov.au

    [3984] Non-arm's length expenditure

    Title
    Final Law Companion Ruling
    Non-arm's length income – expenditure incurred under a non-arm's length arrangement

    Purpose
    This final Ruling will provide the Commissioner’s view of amendments in the Treasury Laws Amendment (2018 Superannuation Measures No 1) Act 2019, concerning the application of the non-arm’s length income provisions where a trustee incurs ‘non-arm’s length expenditure’ under a scheme.

    Expected completion
    July 2021

    Comments
    Draft LCR 2019/D3 published on 2 October 2019. Comments period closed on 15 November 2019. Further targeted external consultation has been undertaken and we have continued to receive submissions.

    We recognise this is an important issue for the SMSF industry and, given the complexity and interest in this issue, we are seeking additional advice before finalising our position. As this will impact the timing for finalisation of this Ruling, we will be updating Practical Compliance Guideline PCG 2020/5 Applying the non-arm's length income provisions to 'non arm's length expenditure' – ATO compliance approach for complying superannuation entities to extend our compliance approach by another 12 months. This means we will not allocate compliance resources to determine whether the non-arm’s length income provisions apply where the super fund incurred non-arm’s length expenditure of a general nature that has a sufficient nexus to all ordinary and/or statutory income derived by the fund in the 2021–22 income year. This transitional approach will not apply where the super fund incurred non-arm’s length expenditure that directly related to the fund deriving particular ordinary or statutory income.

    Contact
    PAGSEO@ato.gov.au

    See also:

    [4002] Self-managed super funds – interests in another entity

    Title
    Draft SMSF Determination
    What constitutes an ‘interest in another entity’ for the purposes of Division 13.3A of Superannuation Industry (Supervision) Regulations 1994 (SISR)?

    Purpose
    This draft Determination is being developed to consolidate and update ATO interpretative decisions ATO ID 2008/51 and ATO ID 2008/52.

    Expected completion
    Mid 2021

    Contact
    PAGSEO@ato.gov.au

    Last modified: 04 May 2021QC 50320