SMSF Legislation Change

The government has announced as part of its mid year economic outlook today that it will introduce legislation amending the tax ruling TR2011/D3 whereby the taxation exemption will now continue post death on assets supporting a superannuation pension until such time as the superannuation death benefit is paid out.

This would remove the issue from the previous tax ruling that CGT would be incurred on death if assets were sold to pay a death benefit as the pension was deemed to have ceased at the date of death.