In the Mid-Year Economic and Fiscal Outlook in November 2012 a significant change was announced by the Treasurer with respect to pensions and tax in superannuation. This was in response to substantial lobbying by the industry to clarify certain areas of TR 2011/D3 and provide certainty to superannuation fund members. This is a welcome announcement from the Government, however further areas are yet to be confirmed that are important from an estate planning perspective within superannuation and need to be considered in detail.
This paper outlines the following:
- what the MYEFO announcement actually means for your clients
- the actuarial requirements within a fund upon the passing of a member
- the interaction of the pension exemption and the treatment of taxation components in superannuation
- strategies available to enhance benefits from an estate planning perspective.