Actuarial Services  

ABP Certificates

An actuarial certificate is needed under s295-390 of the ITAA97 in order to claim a proportion of the assessable SMSF income as exempt from tax under the unsegregated method. Fill in the data form below. Alternatively, simply email us the general ledger from the admin application and draft accounts before year end allocations.

2020/21 Cost: $77 Inclusive of gst

Defined Pensions

For SMSFs with a legacy defined pension such as s1.06(2) Lifetime; s1.06(7) Life Expectancy and s1.06(6) Flexi Pension, the report checks that the assets meet the high probability requirement going forward and provides the s295-390 tax exemption percentage for past year. Please email the application form and supply the previous actuarial report.

2020/21 Cost: $220 inclusive of gst

Lifetime Calculator

This calculator allows you to estimate the liability of a lifetime pension for either a single person or a couple, including the reserves needed for high probability certification. (Save to desktop - Right click - unblock in properties)

Min Pension Calcs

If a pension does not meet the minimum drawdown requirements, then the current pension income exemption is lost from the beginning of the financial year.

NetActuary has web based calculators that allow you to check these requirements for both Account Based Pensions and Market-Linked/TAPs.

Reduced ECPI Redtape

The Government proposes to introduce some ECPI simplification from 1 July 2020. A SMSF will not be required to get an actuarial certificate if all entitlements during the financial year are in retirement phase - even if a member has benefits elsewhere that places their Total Super Balance above $1.6m The previous industry practice of a single unsegregated actuarial certificate for the whole year, even if for part of the year the benefits were solely retirement phase pension, will be reintroduced.

Transfer Balance Caps

Special valuation (and other) rules apply to capped "defined benefit income streams" (DBIS). Flexi pensions don't fall under these rules. Market-linked pensions may or may not be a DBIS depending on the commencement date.  Currently, market linked pensions have commutation anomolies that need to be corrected by legislation.

Where the defined benefit income stream exceeds $100,000, 50% of the excess is included as assessable income and taxed at the individual's marginal tax rate.