The new financial year always brings change, and 2019/20 is one of the more dynamic in recent times. An array of rates and thresholds have moved, but the first week of this July brings more than just incremental changes. A number of rules affecting the clients of financial planners are markedly different in the new financial year. This month there are a dozen of these changes that planners need to know about;
9. Anti-detriment payments no more
Anti-detriment payments on superannuation death benefits were created to ensure contributions tax paid over the life of a super account was refunded on the death of the member. Such payments had already been restricted to death benefits from the super of those who died before July 1, 2017, however even those payments have ceased as of July 1, 2019.
While a financial loss to certain beneficiaries, it does mean that recontribution strategies can now be executed without concerns about reducing potential anti-detriment payments. It also means that Self Managed Super Funds (SMSFs) that had created reserves to pay anti-detriment payments are going to need to very carefully commence distributing or repurposing those reserves.
The information contained in this publication is based on the understanding KeyInvest (ABN 74 087 649 474 AFSL No. 240667) has of the relevant Australian legislation as at the date shown in this publication.
The information contained in this publication is of a general nature only and is intended for use by financial advisers and other licensed professionals only. It must not be handed to clients for their keeping nor can any copies of sections of this publication be given to clients. KeyInvest is not a registered tax agent under the Tax Agent Services Act 2009. We recommend that your client be referred to their registered tax agent or legal adviser prior to implementing any recommendations that you may make based on the information contained in this publication.