The ATO on Wed 26.6.2013, released the following Taxation Determinations:
- TD 2013/10: Is the application of a deceased member’s benefits in a regulated super fund to commence a super income stream from that fund for each of one or more dependant beneficiaries of the deceased member (in accordance with regulation 6.21 of the Superannuation Industry (Supervision) Regulations 1994) a transfer of an amount between superannuation interests in that fund for the purposes of s 307-5(8) of the ITAA 1997? According to the ATO, the application of a deceased member’s benefits in a regulated super fund to commence a super income stream from that fund for each of one or more dependant beneficiaries of the deceased is not a transfer of an amount between super interests in that fund.
- TD 2013/11: Is a payment of all or part of a deceased member’s benefits in a regulated super fund from that fund to another regulated super fund, to immediately cash those benefits to a beneficiary of the deceased person, a “roll-over superannuation benefit” as defined in s 306-10 of the ITAA 1997? The Determination indicates that a payment as described is not a “roll-over super benefit”.
- TD 2013/12: Must a child of a deceased person be aged less than 18 at the time they receive the superannuation lump sum referred to in s 303-5(1) of the ITAA 1997 to satisfy, by virtue of para 302-195(1)(b) of that Act, the requirement in para 303-5(1)(c) that “you are a death benefits dependant” of that deceased person? The ATO says that the requirement in para 303-5(1)(c) is satisfied by virtue of para 302-195(1)(b) if the decreased person’s child was aged less than 18 just before the decreased person died.
- TD 2013/13: Is a payment by a complying super fund (first fund) to another complying super fund of a superannuation lump sum arising from the full commutation of a superannuation income stream paid to a person as a beneficiary of a deceased member of the first fund, a “roll-over superannuation benefit” for the purpose of s 306-10 of the ITAA 1997? The ATO view is that a payment as described is a “roll-over superannuation benefit” for the purposes of s 306-10 if the person was the spouse of the deceased, the super lump sum is paid after the latest of the times, and the Commissioner has not made a decision that the super lump sum is not s super member benefit.
The ATO has also released Self Managed Superannuation Funds Determination SMSFD 2013/1 (Where a deceased member’s benefits in a SMSF are cashed in the form of a pension or an annuity to a child of the deceased member in accordance with subpara 6.21(2A)(b)(ii)(B) of the Superannuation Industry (Supervision) Regulations 1994, does subreg 6.21(2B) of those regulations require the trustee to determine whether the child has a disability of the kind described in that subreg on the day the child turns 25 (or an earlier date, if applicable under para 6.21(2B)(a) of those Regulations), in order to determine whether the pension or annuity being paid to the child is exempt from the requirement to be commuted and cashed as a lump sum on that day?). It states that subreg 6.21(2B) of the SIS Regulations requires the SMSF trustee to determine whether the child has a disability of the kind described in s 8(1) of the Disability Services Act 1986 on the day the child turns 25 (or an earlier date, if applicable under para 6.21(2B)(a) of the SIS Regulations).
[LTN 121, 26/6/13]