Background

In 2024 Harry who is sole member of ICE Super Fund dies at age of 72. He dies on 14/01/2024. He has a wife Myrtle who is regarded as his Dependant. On death there is no BDBN is place. The fund was 100% in accumulation phase.

Only asset in fund is CBA Listed shares bought on 01/017/2015 for $300,000. Value of the CBA shares on 14/01/2024 is $940,000 (Notional Capital Gain on 14/01/2024 is $640,000). On 20/05/2024 value of CBA shares is $960,000 and an in in-specie transfer of the shares is to be made to Myrtle on that date (Notional Capital Gain on 20/05/2024 is $660,000).

QUESTION 1

As it is death benefit payment to a dependant it is not subject to tax when paid to Myrtle. Myrtle does not pay tax on receipt of the shares. Please confirm.

QUESTION 2

As it is an in-specie transfer Myrtle receives the shares at a cost base of date of transfer = $960,000. This will be her acquired cost base should she dispose of the shares for CGT purposes in future = $960,000.

QUESTION 3

Within the smsf on transfer of the shares is a Capital Gain reported using the amount of $660,000. That this gain is subject to tax being paid by the smsf. My understanding is that No Capital Gain subject to tax being paid by the smsf when lodging 2024 tax return is reported in the return That the smsf has no tax due to be paid associated with the transfer. This is because the transfer / event is associated with a Death Benefit. Please confirm.

Await your advice as per above.