Positive news on pension ruling

Although its title doesn't provide any hint, in a press release issued today the Minister for Financial Services and Superannuation announced that the law would be amended to allow the pension earnings tax exemption to continue following the death of a pension recipient until the member's benefits have been paid our of the fund.

This announcement might explain the long delay in the finalisation of TR 2011/D3 which has been out since July 2011.

 

We will need to wait to see how the ATO proceeds, although it seems the most likely approach will be for the draft ruling to be withdrawn, and a new draft ruling issued addressing matters that will not be affected by the proposed amendments to the law.