The ATO has withdrawn a draft taxation determination labelled “stringent” by the SMSF Professionals’ Association of Australia.
Draft tax determination TD 2013/D7 was withdrawn yesterday, according to a notice issued by the ATO.
"[TD 2013/D7] provided circumstances of where an asset of a complying superannuation fund are segregated current pension asset[s] under section 295-385 of the Income Tax Assessment Act 1997," said the SMSF Academy's Aaron Dunn.
The draft determination explained the Commissioner’s preliminary view about when an asset of a complying superannuation fund is invested, held in reserve or otherwise being dealt with for the sole purpose of enabling a fund to discharge liabilities payable in respect of superannuation income stream benefits, the ATO stated.
“A number of submissions were received during the course of consultation and it became clear that approaches vary materially across the industry,” the ATO added.
“A new determination dealing specifically with the key issue of bank accounts will be issued in the near future, and the ATO will further consider and consult on the balance of the matter.”
The SMSF Professionals’ Association of Australia (SPAA) made a submission to the ATO regarding the draft determination.
“SPAA believes that the draft tax determination clarifies any doubt as to when an asset of a superannuation fund can be a segregated current pension asset,” the submission stated.
“However we believe that the draft [determination] is too stringent in [its] limitations on how superannuation funds can hold their assets and when a fund must apply the segregated pension.”
“We also believe that the limitations on segregating assets in TD 2013/D7 will mainly affect superannuation funds holding non-fungible assets such as real property and bank accounts, discriminating against superannuation funds that hold those assets as investments.”
SUBSCRIBE TO THE SMSF ADVISER BULLETIN
- 22 Sep 2017ASIC permanently bans SMSF property spruikerBy Miranda Brownlee
- 22 Sep 2017Male SMSF investors ‘bigger risk takers’, says reportBy Staff Reporter
- 22 Sep 2017Lawyer flags subdivision trap with downsizer contributionsBy Miranda Brownlee
- 22 Sep 2017ATO urged to address ‘unknowns’ with LRBA reportingBy Miranda Brownlee
- 21 Sep 2017Lost and unclaimed super climbs to $18 billionBy Lara Bullock
- 21 Sep 2017ATO to release further guidance on reservesBy Miranda Brownlee
- view all
- Male SMSF investors ‘bigger risk takers’, says report
Male SMSF members tend to hold a greater share of assets in higher risk investments including domestic shares and property in comparison to ...read more
- Lawyer flags subdivision trap with downsizer contributions
SMSF trustees planning to make downsizer contributions have been warned that if a property has been subject to a partial sale in the 10 yea...read more
- ATO urged to address ‘unknowns’ with LRBA reporting
The ATO has been asked to provide further clarity around the events based reporting requirements for LRBA repayments, with the new requireme...read more
- view all