Can an SMSF borrow money to pay superannuation benefits?

Can an SMSF borrow money to pay superannuation benefits?

Trustees of a Self-Managed Superannuation Fund (SMSF) are prohibited from borrowing or maintaining an existing borrowing of money under subsection 67(1) of Superannuation Industry (Supervision) Act 1993 (SISA) except in very limited circumstances as listed under...

Can in-specie benefit payments be made from a pension account?

The ATO’s recent determination SMSFD 2013/2 has offered SMSFs a “green light” to pay “in-specie” benefits to members. This has changed the traditional view that “in-specie” benefits cannot be paid from pension accounts. However, there are still some conditions that...

Commutation death benefit

Rollover or contribution? Section 307.5(3) ITAA 1997 requires certain criteria must be satisfied when dealing with commutation of a pension which is payable because of the death of a member. The flowchart below explains the intricate workings of section 307.5(3) in a...

Shortfall in pension

In February 2014, the Australian Taxation Office published a FAQ to clarify the minimum pension payment requirements. The table below will explain these requirements at a glance. Question Answer What if fund fails to meet minimum pension?Fund cannot claim exempt...

Taxation of insurance proceeds upon member’s death

Taxation of insurance proceeds on the death of a member can be fairly complicated and can have adverse tax consequences if not structured properly. The flowchart below seeks to clarify the tax consequence of the benefit payment which is dependent on the age of a...