What is ECPI Choice, and should we be using it? Despite the excellent software we have developed over the year, I am still very hands-on with preparing some Actuarial Certificates. Roughly 5% of our certificates are requested using Excel application forms processed through Excel-based software that I originally developed back in 2007. In addition, there […]
Q: I have a fund that starts off the year in full accumulation phase and then moves into full retirement phase on 1 January 2023. After that, a member receives a contribution on 1 February 2023. Both members have a Total Super Balance of less than $1.6 million so deemed segregation is possible. Will the […]
Using the unsegregated or segregated method for the purpose of claiming Exempt Current Pension Income (ECPI) will no longer be a choice for some SMSFs. Introduced in the Treasury Laws Amendment (Fair and Sustainable Superannuation) Act 2016, the decision to use the unsegregated or segregated method for the purpose of claiming Exempt Current Pension Income […]
For SMSFs that incur general expenses from assets gaining or producing both Exempt Current Pension Income (ECPI) and assessable income in a given financial year, they may be eligible to claim a portion of the expenses as deductible. The Australian Taxation Office require that the apportionment of deductibility that is applied to general expenses is […]
For SMSFs that incur general expenses from assets gaining or producing both Exempt Current Pension Income (ECPI) and assessable income in a given financial year, they may be eligible to claim a portion of the expenses as deductible. To calculate the apportionment fairly and reasonably, there are two methods available under Section 8.1 of Tax […]
Another financial year has been and gone and you’ve only just realised that an Account Based Pension has not met the Minimum Pension Standards. Sound familiar? Well you still might be in luck. The Commissioner of Taxation can exercise their General Powers of Administration (GPA) and allow a super income stream to still be entitled […]
With a new financial year just beginning, there is no better time to start thinking about strategies to maximise Exempt Current Pension Income (ECPI) than right now. Two methods on claiming ECPI For SMSFs who intend on claiming ECPI, there are two methods available: Unsegregated Method and Segregated Method. For Trustees who have elected to […]
Let us break down the five most common mistakes we see when it comes to failing to meet the minimum pension standards. Account Based Pensions (ABP) are required to pay a minimum amount each financial year in order to satisfy the minimum pension standards and be eligible to claim Exempt Current Pension Income (ECPI). It […]
Changes to TRIS The good old days of a Transition to Retirement Income Stream (TRIS) receiving tax free earnings is now a distant memory for most SMSFs. Effective 1 July 2017, the Australian Government have removed the tax exemption on earnings received from assets supporting a TRIS that is not in ‘retirement phase’. The intention […]
Everything you need to know on Deemed Segregation The Australian Taxation Office (ATO) have provided further guidance on when it is compulsory to use the segregated method for the purposes of claiming Exempt Current Pension Income (ECPI). This guidance was not consistent with previous industry practice and as a result, calculating ECPI will be a […]