Question: My wife (64 years old) is on a transition to retirement pension (TTR) and I (66 years old) am on an account-based pension (ABP) and will likely need an actuary's report for 2018. Do you know whether an actuary takes into account deductible expenses for my wife's TTR, which would reduce her assessable non-exempt income?
Answer (By Graeme Colley): The short answer to your question is that expenses that relate to the TTR pension will be taken into account in determining the expenses of the fund, which are tax deductible.
The changes to superannuation, which commenced on 1 July 2017, now treat TTR pensions differently depending on whether the TTR is considered to be ‘in retirement phase’ or ‘not in retirement phase’. This will have an impact on the calculation of the taxable income in the fund that is tax exempt and whether the fund’s expenses are proportionately tax deductible.
- A rough first quarter, but it’s always darkest before the dawn
- Trade fears put pressure on portfolios
- Santos bet pays off for takeover target portfolio
- Professional’s Pick – 3P Learning (ASX: 3PL)
- SMSFs and your retirement horizon
- Buy, Hold, Sell – what the brokers say