Author Archives: actuarialmelanie

About actuarialmelanie

I am an Actuarial Analyst with Bendzulla Actuarial based in Hobart, Tasmania. I work with the completion of SMSF Actuarial Certificates, in particular the tax exempt percentage certificates (S295-390 ITAA 1997) and the year end adequacy reports which give the adequacy opinion for defined benefit pensions in an SMSF. I am studying the actuarial exams with the goal of becoming a Fellow of the Institute of Actuaries of Australia. In my 'spare time' I love to play and coach squash.

TTR: consequences of exceeding maximum pension payments


Transition-to-retirement pensions can be a useful tool for members of an SMSF who have reached their preservation age and wish to reduce their working hours without reducing their income. Like account-based pensions transition-to-retirement (TTR) pensions must meet the minimum pension … Continue reading

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Deductibility of insurance premiums in an SMSF


Background Life insurance and Total and Permanent Disability premiums paid by a Self Managed Super Fund prior to 1 July 2007 had always been fully deductible. However the ‘Simpler Super’ changes which came into effect from 1 July 2007 introduced … Continue reading

Posted in Actuarial Certificates, Income and Expenses, SMSF | Tagged , , , , , , , , , , , , , , | 8 Comments

Treatment of income and expenses when the fund is segregated


Income: The income on segregated assets will be 100% tax free or 0% tax free based upon whether the assets are backing pension or accumulation.  Any income on an unsegregated pool of assets will receive a tax exempt proportion given … Continue reading

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Overview of defined benefit pensions


A defined pension as defined under Section 9A or 9B of the Social Security Act exchanges a purchase price for a specific defined income stream.  The member ceases to have an interest in the assets and the income stream is not linked to the account balance.  … Continue reading

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An update on the commencement of the debt relief for defined benefit pensions


Further to our blog post outlining the Social Security Specification which will waive the debt incurred when commuting a defined benefit pension to a market linked pension in an SMSF, this morning we received more information regarding the expected date … Continue reading

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Good News! Centrelink debt relief for SMSFs with defined benefit pensions


On 15 April 2011, Jenny Macklin, Minister for Families, Housing, Community Services and Indigenous Affairs recently issued a Specification waiving the debt incurred on the commutation of a defined benefit pension to a market linked pension.  This Specification is the Social Security … Continue reading

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Why defined benefit pensions are not 100% tax exempt


An actuarial certificate will be required to calculate the tax exempt percentage for any pool of assets that contain a defined benefit pension.  This is because defined benefit pensions in most cases are not entirely tax exempt, unlike account based, … Continue reading

Posted in Actuarial Certificates, Defined Benefit Pensions, SMSF | Tagged , , , , , , , , , , , | 5 Comments