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Phuong Hoang Thi Ngo

Jun 18, 2023

Explain help

in SMSF Technical Forum

Sub Reg 1.06 (9A) refer that Pension payments must be made at least annually, and must be at least the amount calculated under Schedule 7. Could you please guide me where find out Schedule 7?

2. Reg 13.12 refer that Trustees must not recognise an assignment of a super interest of a member or beneficiary.

Reg 13.13 refer that Trustees must not recognise a charge over or in relation to a member’s benefits

What exact mean above?

Many thanks

2 comments

Comments (2)

Phuong Hoang Thi Ngo

Jun 19, 2023

Thanks a lot for help

THE AUDITORS INSTITUTE

Jun 18, 2023

Hi Phuong

Re your queries:

1. Schedule 7 can be found at:

http://classic.austlii.edu.au/au/legis/cth/consol_reg/sir1994582/sch7.html

2. SIS Regulation 13.12 means that you cannot assign a member's benefit to another person or entity. That is the benefit cannot be treated as if it belongs to another person / entity.

3. SIS Regulation 13.13 means that you cannot recognise a charge over a member's benefit to another person or entity. That is a member's benefit cannot be used as security for a liability / borrowing.

The ATO advises in relation to SIS Regulation 13.12 & 13.13:

www.ato.gov.au

Compliance audit

Guidance on the minimum expectation of audit checks and evidence for SMSF auditors.

"Reg 13.12

The auditor should obtain evidence that trustees have not recognised, encouraged or sanctioned an assignment of a member’s super interest by seeking written confirmation from trustees (in trustee representation letter).

Reg 13.13

The auditor should obtain evidence that trustees have not recognised, encouraged or sanctioned a charge over or in relation to a member’s benefits by seeking written confirmation from trustees (in trustee representation letter)."

Thanks

SMSF AAA