Segregation of pension assets
The ATO has also recently released a document setting out their views on what a super fund needs to do to ‘segregate’ its pension assets and, therefore, ensure that income from those assets is exempt from tax, without the need to obtain an actuarial certificate.
Although the document is only a ‘draft determination’, it provides very practical guidance.
For example, it states that a superannuation fund will often require two separate bank accounts in order to maintain one of them as a segregated bank account.
That is, to properly segregate the bank account so that the fund won’t need an actuarial certificate, a separate bank account will need to be held for the sole purpose of paying the pension, and another bank account may need to be held for other or general purposes.
If you would like advice about superannuation compliance and taxation advice generally, please contact our office.