THE AUDITORS INSTITUTE | FORUM

Archived Forums

When you become a member of The Auditors Institute, you immediately gain access to expertise, advocacy for your profession and peace of mind.

Ask a question in our members-only forum or use the search function to find prior technical discussions on your topic. You can expect a response within 24-48hrs.

Want to become a Member?

Join Now

Already a Member?

Disclaimer

The forum is made available by The Auditors Institute Ltd for the benefit of it’s members only, and its primary purpose is to facilitate education, training, and discussion between members. The information and answers provided within the forum are of a general nature and do not consider any specific circumstances, objectives, financial situation or needs related to the matter/s raised. The responses should not be construed as financial advice, and each Member should seek their own professional advice before making any decisions. The Auditors Institute Ltd and its representatives are not responsible for any actions taken based on the information provided in the forum.

To test this feature, visit your live site.

Alkesh Soni

Oct 05, 2022

Exempt Current Pension Income

in SMSF Technical Forum

XYZ Family SMSF has two members aged 62 and 60. Both retired last year (2020-21) on reaching their preservation age and commuted their SMSF interest to account-based pensions.

One of the members has again started part-time work and her employer contributions made in SMSF. Another member has made personal concessional contribution during the year.

Can they claim ECPI based on actuarial exempt percentage for their pension interests?

1 answer0 replies

Comments (1)

THE AUDITORS INSTITUTE

Oct 05, 2022

Hi Alkesh

Yes they will be able to claim exempt current pension income (ECPI) from the year that they started their retirement income streams. If the Fund has accumulation balances in a year then yes an actuarial certificate will be required.

They have met a condition of release by retiring after preservation age so can commence a retirement income stream from that date. If at a later date contributions are made they go to an accumulation account. If they choose to be employed again after they "permanently retired" this does not impact the tax status of their retirement income streams.

To be able to claim ECPI the pension rules have to be followed including having paid at least the required minimum pension for the year.

Thanks

SMSF AAA