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2nd August 10
Core Newsletter, The latest edition of our Core Newsletter
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5th June 10
INTRODUCING OUR COOL CLIENTS!,
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1st March 10
CORE BUSINESS - FREQUENTLY ASKED QUESTIONS,
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19th December 09
Is your business prepared for Random Government Audits, Reviews & Investigations? Our Audit Protection Service can help...,
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20th May 09
PRESS RELEASE - Small Business Tax Break Boost, The Rudd Government will provide another major
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22nd April 09
TRANSITION TO RETIREMENT INCOME STREAM,
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15th April 09
IT'S YOUR MONEY ... BUT NOT YET! - Self Managed Superannuation,
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TRANSITION TO RETIREMENT INCOME STREAM
22nd April, 2009
As you may know, members of Superannuation Funds are able to take a pension without retiring once they turn age 55. This is known as a Transition to Retirement Income Stream (TRIS). Whilst receiving a TRIS, the member’s share of the profit in the Super Fund is tax free but the TRIS itself is added to the member’s taxable income with a 15% rebate attached.
In some cases there has been a reluctance to commence a TRIS as it has a set minimum of 4% of the member’s balance. For example, a member who had a balance of $750,000 in their Fund would have to draw a minimum pension of $30,000 per year. However, this year the Federal government (as part of it’s economic package) have reduced minimum pensions by half for the 2009 year. The minimum in the example above would now only be $15,000 and the member’s share of the Fund’s income would still be tax free.
While most of us are not expecting to make huge profits in our Funds this year, anyone who is – or has made or will make a large capital gain – should discuss a TRIS with their Financial Advisor. There are restrictions on TRIS and they will not suit everybody but they can be extremely tax effective under the correct circumstances. We should also remember that at the moment the reduction in the minimum is for the 2009 year only and that there may be further changes in the May budget.
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