ATO seeking guidance on TBC and stalls on NALE and education orders
The ATO is developing advice on a number of issues related to superannuation including the superannuation income stream and determining the amount of statutory income that is considered non-arm’s length income.
Advice is being sought for the superannuation income stream under the title Draft update to Taxation Ruling TR 2013/5 and is focussing on when a superannuation income stream commences and ceases.
TR 2013/5 has been impacted by the legislative amendments flowing from the 2016 Budget announcement of the transfer balance cap, which limits the superannuation interests that a person can have in retirement phase. The Addendum will update the legislative references in the Ruling as a result of these amendments, as well as address other amendments – including to the definition of superannuation income stream benefit.
It is expected to be completed this month, however, the Regulator noted that completion of this draft update has been delayed due to other higher priority issues and to enable further consideration of issues relating to reversionary pensions.
In regard to NALE, the Regulator has said the final update to Tax Ruling TR 2010/1 will explain the interaction between the non-arm's length income provisions and the rules concerning superannuation contributions.
It recently noted this issue was removed from the Advice under development program in May 2023.
Treasury issued a consultation paper Non-arm's length rules for superannuation funds, which closed for comment on 21 February 2023. Work is not progressing on this issue until the outcomes from this consultation are known.
The ATO has also stalled progress on the SMSF education directions Practice Statement which is proposed to provide guidance to ATO staff on the relevant matters to be considered when deciding whether to give a trustee or a director of a body corporate that is a trustee of a self-managed super fund a written education direction under section 160 of the Superannuation Industry (Supervision) Act 1993.
Publication of this product has been delayed by the current lack of approved education courses and the ATO stated it is not proceeding with this product at this time and will recommence working on this issue when we have confirmation an approved education course is available.
