For 2017/18 and beyond there are three profound changes that affect the tax exempt income available to pension funds (often referred to as exempt current pension income or ECPI). This in turn affects actuarial certificates provided for these funds. The changes are:
transition to retirement pensions that are still being paid to a member who has not retired (or met another full condition of release) no longer give rise to ECPI. Instead, that benefit will be restricted to just pensions that are classified as "retirement phase" pensions (pensions being paid to someone who has retired);
some funds are no longer allowed to claim their ECPI on a "segregated" basis. This means that those funds can't choose to segregate (ie set aside a specific group of assets to provide pensions). But it also means they will never be deemed to be segregated even if the fund is exclusively providing retirement phase pensions for all or part of the year.
As a result there are major changes required to the administration software used to prepare SMSF financial statements and tax returns (eg Class, BGL, superMate) as well as the calculations carried out for actuarial certificates.
This site has been designed to help you navigate through the changes.
Let us know how we can help: