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‘Practical issues’ flagged with fix for death benefit rollovers
While the government has now addressed an unintended consequence impacting death benefit rollovers with insurance proceeds, there are still some practical issues with rollovers that practitioners should watch out for, a technical expert warns.
As part of Treasury Laws Amendment (2019 Measures No. 3) Bill 2019, which received royal assent on 22 June this year, the government implemented a fix for an issue relating to death benefit rollovers with insurance proceeds resulting from previous reform changes.
Colonial First State executive manager Craig Day said the issue relates back to the 1 July 2017 rule changes.
“When rolling over a death benefit, technically that is the payment of a superannuation death benefit lump sum, and if there are any insurance proceeds as part of that lump sum, then that triggers that untaxed element calculation,” Mr Day explained in a FirstTech video.
Miranda Brownlee
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.
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