Transition to retirement income streams moving to retirement phase $330

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(PRICE INCLUDES GST)

Since 1 July 2017 it has been critical to identify the precise time a transition to retirement pension moves into retirement phase (ie, the time when the member turns 65, retires or meets another condition of release that provides full access to their superannuation). The Trustee must report the value of the pension at that precise time for transfer balance account purposes and the fund also starts to receive a tax exemption for some or all of its investment income.

Documentation is key here and Heffron has a template pack that provides the resolutions/minutes needed to record the move into retirement phase for an existing transition to retirement pension. We address the change in two parts:

  • for some members, all that is required from a documentation perspective is a notification and resolution/minute to reflect the member’s change in circumstances (eg retirement), while
  • for others, it is also necessary to commute an amount from the transition to retirement pension (or other retirement phase pension) to ensure the member does not exceed their personal transfer balance cap.

The order in which the above changes are made can be important and the document template pack includes technical notes to explain which documents are required and when.

This template pack can be used for all financial years from 2017/18 onwards.

There is no limit on the number of funds or members for whom these templates may be used – the pack is a tool for accountants or advisers to use in their practice as many times as they wish or for trustees to use for one or all members.

Of course, the change also requires the preparation and lodgement of a Transfer Balance Account Report. Heffron can prepare this at an additional cost should it be required.

Add/Remove reversionary pensioner without stopping/restarting pension $330

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(PRICE INCLUDES GST)

For accountants / advisers and also members / trustees looking to either:

  • add a reversionary pensioner to an existing account-based pension or transition to retirement pension, or to
  • remove an existing reversionary pensioner from an existing account-based pension or transition to retirement pension without stopping / restarting the pension*. 
    Adding / removing a reversionary pensioner without stopping / restarting a pension could be desirable in cases where the pension is grandfathered for income test purposes (ie, age pension or Commonwealth Seniors Health Card) or in order to prevent the tax free / taxable components of the pension mixing with accumulation money held by the member in that fund.  

Documentation is key here and Heffron has developed a template pack that provides the member instructions and the resolutions / minutes needed. 

There is no limit on the number of funds or members for whom these templates may be used - the pack is a tool for accountants or advisers to use in their practice as many times as they wish or for trustees to use for one or all members.

* Importantly, note that the governing rules of the fund must allow the terms and / or conditions of a pension to be amended while the pension remains in place.  Heffron can amend the governing rules of the fund if needed (please contact us for the details and costs of this additional service if needed)

© 2024 Heffron Consulting Pty. Ltd. trading as Heffron.  |  ABN 88 084 734 261  |  AFSL 241739  |  All rights reserved.

The information shown on this site is general information only, it does not constitute any recommendation or advice; it has been prepared without taking into account your personal objectives, financial situation or needs and you should consider its appropriateness with regard to these factors before acting on it. Any taxation position described is a general statement and should only be used as a guide. It does not constitute tax advice and is based on the tax and superannuation laws which applied at the time the information was prepared and our interpretation. Your individual situation may differ, the tax and superannuation laws may have changed and you should seek independent up to date professional tax advice. You should also consider obtaining personalised advice from an adviser holding an Australian Financial Services Licence before making any financial decisions in relation to the matters discussed.

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