Government lobbied to address legacy pension issues
With SMSF trustees who hold market linked and complying lifetime income streams locked into continuing their SMSF, the industry is working with the ATO and government to find a solution, says PwC.
PwC Private Clients director Liz Westover said there are still a number of people who hold market linked and complying lifetime income streams in their SMSF.
“These types of income streams may no longer be appropriate for them but they have an inability to shut them down without significant consequences,” explained Ms Westover.
“In some cases, they have no option but to keep them operating due [to] their non-commutable status which can further lock them into continuing an SMSF.”
The superannuation reforms have compounded the complexity and rigidity of these arrangements, she said, and this is resulting in poor outcomes for clients.
“Industry is working with the Australian Tax Office and the government to find an appropriate outcome for these people,” she said.
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates. Miranda has also directed SMSF Adviser's print publication for several years.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.