No tax on deceased estate pensions

March 14th, 2013 | Estate Planning, Financial Planning, Investment Advice, Superannuation

Under draft regulations released recently by the Federal Government, superannuation funds will be exempt from tax on pension stream assets for deceased estates.  These amendments give superannuation funds the right to tax exemption on investment earnings from assets that support a pension stream following a pension member’s death, and until the pension benefit is fully paid. 

Amidst uncertainty for family members about the taxation of loved one’s super, this announcement last October by the Government comes as welcome news for beneficiaries and superannuation funds, effectively allowing super fund trustees to dispose of pension assets on a tax-free basis to fund the payment of death benefits.

The new regulations are backdated to 1 July 2012 and will apply to the 2012-13 and later income years.

For more information on Estate Planning, Superannuation and their benefits, feel free to read some of our blogs in our Financial Planning News section. 

Quinn Financial Planning has the expertise to help you build your wealth.  For more advice on estate planning and superannuation, contact Peter Quinn here at Quinns by submitting an online enquiry or calling us on +612 9580 9166 to book an appointment.