SMSF update – member declaration required by 30 June 2017

The ATO has released guidance for SMSF members and trustees effected by the 1.6 million balance cap with a member declaration required by 30 June. The member declaration is to give permission to the trustees to commute any balances over $1.6 million into accumulation account. A pension computation request form and trustee minute is required. The ATO release is below for information.

http://law.ato.gov.au/atolaw/view.htm?docid=%22COG%2FPCG20175%2FNAT%2FATO%2F00001%22

To make it valid;

• Must be completed before July 1, 2017;
• Must be in writing;
• Must be accepted and acknowledged by the Trustees of the Super Fund before July 1 this year;
• Does not have to stipulate the amount of the withdrawal;
• It must stipulate the Methodology – order for the Trustees the balance to be reduced, especially where the client has more than one pension in the SMSF; and
• Must stipulate the order which the pensions are to be reduced.

This is general advice only and if you should wish to discuss further, please contact the office.