Last month we exposed the ‘Fair and Sustainable Superannuation Package’ Passing Parliament and ran highly-popular presentations regarding the tips needed to deal with these changes. Morrows’ welcomed hundreds of attendees who all valued the advice, direction and open-forum provided by our acknowledged superannuation experts – Maureen Allan and Murray Wyatt.
However, on Thursday 24 November the ATO released Law Companion Guide (LCG) 2016/D8 and D9. The draft has added further complexity on CGT relief for a TRIS.
It is designed to provide some extra insights into how the ATO will apply the CGT relief accompanying the 1 July 2017 changes to superannuation pensions. The draft LCG latest guidance from the ATO will administer the law in such a way as to require that:
- “…there must be a connection between the actions an individual took to comply with the reforms, and any capital gain arising on assets used to support the relevant superannuation income stream.”
A TRIS does not have to make any changes to comply with the legislation, as a TRIS does not count for the $1.6 million cap and therefore is not forced to commute the pension to comply with the $1.6 million cap. Effectively this would mean that a TRIS cannot apply for CGT relief.
Several submissions have been sent to the ATO to clarify the position. Morrows will provide you with continued updates on the progress of these developments as they come to hand.
How Can Morrows Help?
Prior to making any decisions regarding your finances, we highly recommend you seek Licensed advice from Morrows Private Wealth and/or Morrows Legal for specialised amendments to Deeds and other supporting documentation. To make an appointment please contact Morrows on: +61 3 9690 5700 or email: morrows@morrows.com.au today.
For existing Morrows’ clients we will be contacting you directly to discuss these important changes.