Deadline for wealthy clients on the horizon
Latest Webcast - How to bring bookkeeping back into your firm Watch Now >>>

Deadline for wealthy clients on the horizon

Deadline for wealthy clients on the horizon

Accountants are being reminded that, for those clients with large super balances, amounts which exceeded the transfer balance cap on 1 July by $100,000 or less will need to be rectified by 31 December 2017.

In the lead up to 30 June 2017 this year, the ATO provided super funds with transitional relief so that if the fund was above the $1.6 million transfer balance cap by only $100,000 or less, and removed this excess by the end of the year, they would not have to pay excess transfer balance tax.

With 31 December just around the corner, DBA Lawyers director Daniel Butler said SMSF practitioners should ensure their clients have removed these excess amounts out of the pension account.

This transitional relief, he explained only applies to a pension that was in place as of 30 June this year.

“So you cannot get that $100,000 leeway in general, it had to be a pension that was in place as of 30 June this year,” he said.

“It's just worthwhile noting that, because some of your clients may need to rely on that.”

Deadline for wealthy clients on the horizon
accountantsdaily logo
promoted stories