Significant enhancements are being made to SuperMate to help you identify and manage clients affected by the new super rules starting this July. 

Software release 4.1.5 delivers powerful intel

Due to launch late April, release 4.1.5 will allow you to filter information and run a variety of reports, helping ensure you and your clients are reform-ready.

Check for members with account balances over $1.6m

These members will be affected by the transfer balance cap for tax-free retirement phase interests. For those with existing pensions, action will need to be taken to reduce their total retirement phase interest balance to no more than $1.6m, prior to 1 July 2017.

Check which fund members have a transition to retirement income stream (TRIS)

The TRIS integrity measures will remove the tax exemption for earnings from 1 July 2017. Further, from this date a payment from a TRIS cannot be elected to be taxed as a lump sum. The existing ‘pension dashboard drilldown’ will provide you with a list of affected fund members.

Check which members have a market-linked lifetime or life expectancy pension

These are capped defined benefit pensions and are subject to special rules for determining the credit to the member’s transfer balance account. Such pensions will count first towards a member’s transfer balance cap, ahead of any account-based pensions. Members in receipt of these pensions may also have a portion of their pension assessable from 1 July 2017, regardless of being aged 60 or over.

Check which pensions have a nominated reversionary beneficiary

Reversionary pensions are a credit to the reversionary pensioner’s transfer balance account. The credit will be equal to the value of the deceased member’s pension at the time of death and will be a credit in the reversionary’s transfer balance account 12 months after the original pensioner’s death. Member couples with less than $1.6m in a retirement phase interest can still be affected by the transfer balance cap after the death of a spouse.

Check which funds have segregated pensions

Funds using the segregated method to claim ECPI have two options when applying CGT relief.

Check contributions against the caps

Have members fully utilised the higher concessional and non-concessional contribution caps for 2016/17? The ‘member contribution data’ extract tool has been expanded to provide access to this information.

Check which members have triggered the bring forward rule

Transitional rules apply for members who have triggered the bring forward rule in 2015/16 or 2016/17, but not fully utilised by 30 June 2017. This information can also be accessed via the ‘member contribution data’ extract tool.

Review for CGT relief – already a part of SuperMate

You can generate the Accrued Capital Gains Tax Report in SuperMate now for the period 1 July 2016 to 30 June 2017 (or any other date after 9 November 2016). This report will assist with identifying those assets eligible, down to a tax parcel level, for CGT relief and also the estimated notional gain for funds using the unsegregated method to claim ECPI.

Further information

Click here to learn more about these and other changes we will be putting in place for the 1 July super reforms.