The 2004 Budget has introduced a number of unexpected changes to the ability of self managed superannuation funds (‘SMSFs’) to pay Defined Benefit Pensions (‘DBPs’); ie, broadly, any pension other than an allocated pension (‘AP’). Up until 11 May 2004, SMSFs were free to provide (assuming their trust deeds permitted) a range of DBPs including [read more]
Trustee liability
The recent South Australian Supreme Court case of Hanel v O’Neil [2003] SASC 409 is causing uncertainty in relation to a very basic asset protection strategy. The court held that a director was personally liable for debts incurred by the corporate trustee of a family trust even though the trustee was covered by a right [read more]
Pension Changes
This article highlights an important change applying to pensions commencing on or after 1 October 2003. We will first discuss the new rules having regard to allocated pensions (AP) and then briefly discuss their application to complying pensions. Broadly, the new rules require the minimum payment in the financial year a pension is commuted to [read more]
The Pension PDS
From 11 March 2004, trustees of self managed superannuation funds (SMSF) will have to issue a Product Disclosure Statement (PDS) whenever a member converts from growth to pension phase. A PDS is a statement prepared by the issuer of a financial product containing all of the information that a person would reasonably require for the [read more]
