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Final Tax Determination on SMSF bank accounts as segregated current pension assets
This final Tax Determination was released by the Commissioner last Wednesday. It follows from a draft Determination last August referring to SMSF assets generally (rather than just bank accounts), which was subsequently withdrawn in December. That earlier draft had suggested, unless all fund balances were supporting pension payments, that a separate bank account would be required in relation to pensions in order to constitute a segregated current pension asset. The final determination adopts a less restrictive approach.
The Commissioner now accepts, if a bank offers sub-accounts, that a sub account may be maintained for the requisite sole purpose relating to the discharge of pension liabilities (even if other sub-accounts are not). More significantly, the division of a single bank account into notional sub-accounts will also be accepted provided that proper accounting records of those notional sub-accounts are maintained by the SMSF trustees. The prompt division between a bank account for pension liabilities and one that is not for that sole purpose, of receipts or payments requiring apportionment between the accounts, will also be accepted (Taxation Determination TD 2014/7).
16 Apr 2014
06 Jun 2016
Topic: CGT/Income tax/Business and investment structures/Trusts
18 Apr 2016
Topic: CGT/Business and investment structures
17 Feb 2016
Topic: Trusts/Business and investment structures/State Taxes
07 Dec 2015
Topic: Business & investment structures/CGT/Trusts
03 Nov 2015
Topic: CGT/Estate Planning/Income Tax