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Heffron's experts provide a regular stream of thoughts, hints, tid-bits and technical articles to the SMSF industry at large. You can find these below.

My client has excess concessional contributions and their Total Super Balance exceeds $1.6m.  What happens now?

While the rules surrounding excess contributions have remained relatively stable for some time now, the 1 July 2017 changes to non-concessional contribution limits for those with large superannuation balances have understandably muddied the waters.

In particular, what happens when excess concessional contributions are made for someone whose Total Superannuation Balance is above the critical $1.6m threshold?

Can an attorney under an Enduring Power of Attorney (EPOA) make or renew a binding death benefit nomination (BDBN) for a member?

Historically this question has been difficult to answer.  While there does not appear to be any restriction in the Superannuation Industry (Supervision) Act or Regulations (SIS) which would prevent a person acting under an EPOA from completing and signing a BDBN, until recently there has been no legal authority confirming the situation.

However, in a recent case, the Supreme Court of Queensland has confirmed that an attorney has the power to make, renew or extend a BDBN on behalf of a member [Re Narumon Pty Ltd [2018] QSC 185].

My client’s wife died in August 2017. On her death, her acc based pension automatically reverted to him. When do I need to complete a TBAR to report the reversion of the pension and what do I show?

The TBAR system revolves around the reporting of “events”, hence the name “events-based reporting”. 

The reversion of the pension will not count towards your client’s Transfer Balance Cap until the first anniversary of his wife’s death (ie August 2018).  However, the “event” which triggers reporting is not the counting of the pension towards the cap but rather the reversion of the pension in August 2017.

My client’s husband died in March 2018.  On his death, his account based pension automatically reverted to her.  When will the value of this pension count towards her Total Superannuation Balance?

Your client became the “owner” of the pension on the day of her husband’s passing.  This means the value of the pension counts towards her Total Superannuation Balance immediately in March 2018 (although remember that Total Superannuation Balance isn’t actually used for anything other than as at the end of a financial year).