The ATO has withdrawn a draft taxation determination labelled “stringent” by the SMSF Professionals’ Association of Australia.
Draft tax determination TD 2013/D7 was withdrawn yesterday, according to a notice issued by the ATO.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 May 2017ATO sheds light on LRBA reporting requirementsBy Miranda Brownlee
- 22 May 2017Software provider releases super reform-focused servicesBy Jotham Lian
- 22 May 2017ATO poised to ramp up focus on key compliance areaBy Katarina Taurian
- 22 May 2017Caution advised on ATO’s new super balance toolBy Katarina Taurian
- 19 May 2017SMSF real-time reporting slated for FY2018-19By Miranda Brownlee and Katarina Taurian
- 19 May 2017Lawyer points to benefits of AFCA for SMSFsBy Miranda Brownlee
- view all
- Software provider releases super reform-focused services
BGL has announced the release of services, designed to deal with the 2016-17 superannuation reforms, that will help clients tackle the new C...read more
- ATO poised to ramp up focus on key compliance area
With 8 per cent of funds failing to meet their lodgement obligations for the last two years at least, the ATO is set to up its compliance fo...read more
- view all