|
|
|
|
Grandfathering"
your SMSF
contributions |
|
 |
|
|
Grandfathering" your SMSF contributions
|
| Are you? |
- A member or trustee of a defined benefit fund? |
| At a glance: |
- According to the Tax Office, members whose contributions exceed the maximum cap, might be eligible for "grandfathering". |
| You should: |
- Be aware of the "grandfathering" rules.
- Contact us if you require any clarification or advice. |
|
|
| 1. |
From July 1, 2007, contributions caps apply to the contributions that are made to your superannuation funds, with extra tax payable on the excess contributions amount.
|
| 2. |
Often the employer of a member of a defined benefit fund will make a contribution to the fund in general, rather than for the particular member. This is known as a notional taxed contribution. These notional taxed contributions could however exceed the concessional contributions cap.
|
| 3. |
To avoid this issue, a member might be eligible for "grandfathering" the notional taxed contributions.
|
| 4. |
"Grandfathering" is a special rule that allows your fund to treat your notional taxed contribution as being the same as your concessional contribution, thus avoiding the excess contribution tax.
|
| 5. |
To be eligible for "grandfathering" you must have:
a. For the 07/08 and 08/09 financial years, been a member of an eligible defined benefit fund on September 5, 2006;
b. For the 09/10 financial year onwards, been a member of an eligible defined benefit fund on May 12, 2009; and
c. Not had a substantial change to the rules that apply to your benefit since that date.
d. Not had a non-arm's length change to your salary of more than 50% in a year or 75% in three years since that date.
|
| 6. |
More information about the special "grandfathering" rules is available by clicking here or visiting the ATO website at http://www.ato.gov.au.
|
|
|
|
|
|
|
How can
we help you?
Contact us
To discuss how we can
help your organisation,
call us on (02) 9874 8038 or
Send us an email
Request for Services
Insights and Blogs
Tell us what you think |
|
|