Issue
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Clause in the Trust Deed
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| New Declaration Requirement |
An individual who becomes a trustee or a director of the corporate
trustee of the fund must sign a declaration in the approved form stating
that they understand their duties and responsibilities as trustees of
the fund
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| Change of Residency Requirements |
Trustees residing overseas may appoint additional trustees in
Australia to ensure that the fund is a resident fund and hand over the
control and management of the fund to Australian trustees to ensure that
the fund remains a complying superannuation fund and obtains tax
concessions offered by the regulator
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| Acceptance of in-specie Contributions |
The trustees of the fund may accept contributions in cash or
in-specie (transfer of assets)…. The trustees of the fund may accept a
transfer or roll-over of members balance from another complying
superannuation fund in form of cash or in specie…
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| TFN requirement and Rollover of Employer
ETP no longer allowed |
The trustee may not accept contributions for a member:
If the trustee has not received a tax file number for that member;
from 1 July 2007, any contributions which are a rollover of an
employment termination payments from employer of a member
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| Spouse Splitting arrangements |
The trustees of the fund may accept a request for the transfer of
contributions from one spouse member into an account of another spouse
member, or a request for the transfer of contributions into another
complying superannuation fund in which the spouse of the member is a
member….
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| Limits on Spouse Splitting after 5th April
07 |
The trustee may accept requests for the following contributions to
be split (splittable contributions):
• nil of all contributions made prior to 1stJanuary 2006;
• 85% of all concessional contributions (old term deducted) after 1st
January 2006;
• 100% of non-concessional (old term undeducted) until 5 April 2007;
• nil of non-concessional (old term undeductible) after 5th April 2007
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| Contributions more then new Limits |
Trustees may follow the request of the member and from 1st July 2007
may refund any concessional contribution which they have received on
behalf of a member in excess of:
• $50,000 if the member is less then 50 years old; and
• $100,000 if the member is more than 50 years old, up to financial year
ended 30th June 2012.
After 30th June 2012, trustees may refuse any concessional contributions
which they have received on behalf of a member in excess of $50,000 (or
any other indexed concessional capped amount prescribed in
superannuation law).
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| Tax on contributions above the caps |
The member may, if permitted by superannuation law, nominate this
superannuation fund to pay any extra tax liability imposed by the
regulator as a result of concessional contributions received by the fund
in excess of concessional contributions caps..
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| Non Concessional contributions |
A member of the fund may request the trustee to refuse to accept
from a member, member’s spouse or employer or another person a higher
non-concessional contribution than non-concessional contribution cap
made on behalf of a member. Trustees may from 1 July 2007 may refund any
non-concessional contribution which they have received on behalf of a
member in excess of:
• $150,000;
• $450,000, if the member is under the age of 65 years, if the
non-concessional contribution is to bring forward 2 years of
non-concessional contributions;
• $150,000 from a member over 65 years old provided they are gainfully
employed; and
• nil, if the member is over 75 years old.
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| Co- contributions not counted as
non-concessional contributions |
From 1 July 2007, Government co-contributions will not be counted
towards the non-concessional contributions cap.
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| Sale of Business Contributions |
The trustees may also accept contributions of up to $1 million from
a member as non-concessional contributions, at any time, from the
proceeds of the sale of small business assets.
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| Settlement of an insurance claim
non-concessional contributions |
The trustee may accept contribution to the fund, from an insurance
company or employer of the member or any other person, at any time, the
proceeds from a settlement for an injury resulting in permanent
disablement as non-concessional contribution on behalf of a member.
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| Transitional Non-concessional contributions |
The trustees may, between 10 May 2006 to 30 June 2007, accept
non-concessional contributions for eligible members of up to $1
million….
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| Transitional work test requirement |
The trustee may accept contributions from a member who was aged 64,
at any time between 10 May 2006 and 5 September 2006, and who would be
able to make superannuation contributions without having to satisfy the
work test, until 30 June 2007….
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| Acceptance of some Employer ETP’s |
The trustee from 1 July 2007, may accept employment termination
payments from the employer of a member, until 1 July 2012, if a member
was entitled to such an eligible termination payment under their
employment contract as at 9 May 2006. The trustees of the fund may
accept employment termination payments up to a limit of $1 million cap.
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| Acceptance of Co-contributions for self
employed: |
The trustees from 1 July 2007 may accept contributions from a
government body as a co-contribution on behalf of a member who is an
eligible self employed person …..
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| Expenses of the fund paid by members |
The trustees may treat certain expenses paid by the member for and
on behalf of the fund (eg life insurance) as concessional or
non-concessional contributions of the member for superannuation
purposes, and credit the account of the relevant member accordingly….
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| Rollover from Pension phase to Accumulation
Phase |
The trustees may, on the request of a member, rollover or transfer
the benefit of the member from the pension account of the member to the
accumulation account of the member,
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| New Taxation Terms |
From 1 July 2007, the trustee will be required to advise a member
that any full or part lump sum benefit (or pension benefit) paid to such
a member will be calculated in two components, namely: an exempt
component and a taxable component.
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| New Withdrawal components |
After 1 July 2007, the trustee must pay a member a pension in
proportion to that member’s ratio of “taxable” to “tax exempt”
components calculated as at 30 June 2007.
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| Low Balance |
From 1 July 2007, before a member reaches retirement age, the
trustee may pay to the member, on written application, a benefit to the
member, if the balance of the account of that member is less than $200.
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| Abolishing RBL |
The trustee, from 1 July 2007, need not comply with the reasonable
benefit limits calculations and may pay all pensions to members without
any restrictions.
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| Individual Trustees paying a lump sum |
The trustee may on request from a member pay lump sum payments
in-specie, which is in the form of assets of the fund instead of cash
payment to the member.
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| Set Up of New Pensions |
The trustee on request from a member, from 1 July 2007, may choose
to apply the balance of the member’s accumulation account to pay the
benefit of the member as an account based pension
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| Trustee no longer required to compulsory
commence a pension |
From 10 May 2006, the trustee is not required to compulsorily cash
benefits (commence pension) of a member.
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| Allows Transition to retirement pension |
The trustee, if requested by a member in writing, can pay any type
of pension (either allocated pension, or market linked pension or, from
1st July 2007, account based pension) as a transition to retirement
pension.
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| Limits establishment of Market Linked
Pensions |
The trustee must not establish a market linked pension for a member
after 20 September 2007.
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| Converting current pensions to new pensions |
The trustee may convert a current allocated pension and/or
transition to retirement allocated pension to an account based pension
from 1 July 2007 …..
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| Continue to pay life expectancy and other
defined pensions |
The trustee may continue to pay all types of pension, which can no
longer be commenced in a self managed superannuation fund and were being
paid in accordance with superannuation law.
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| Reversionary beneficiary is a non-dependant |
If the reversionary beneficiary is not a dependant of the member the
trustee must not effect the payment of pensions to a non-dependant
revisionary beneficiary. In such a situation the trustee must only pay a
lump sum to the non-dependant.
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| Provisions of Tax File Numbers |
If the member does not provide trustee with their tax file number,
the trustee must, on all contributions, which the fund receives on
behalf of the member over $1,000, pay tax to the regulator at the
highest tax rate that applies to individuals plus Medicare Levy.
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