Family breakdown & TBC issues

National Conference 2020 – Technical Paper

The number of divorces equal 40% of marriages in any year – and then there are the breakdown of de facto relationships on top of this. This Technical Paper covers the various superannuation and related tax issues that arise in relation to a family breakdown including splitting super between separating couples. SMSF advisers need to be aware of the strategies that are involved in maximising the outcome for their client and it’s not just a matter of getting a bigger dollar payout as there are tax and other drivers at play.

The Technical Paper examines:

  • Key points about negotiating a Super split;
  • Key rules at play eg. preservation, proportioning (tax free and taxable) and related Super rules;
  • What happens when a pension is on foot and what TBC and TBAR issues arise
    • CGT roll over relief – do you claim or is it better to give rise to a CGT event? and;
  • Practical considerations.

The contents of this resource are taken to be correct at the time of publication.

Disclaimer: Technical Papers contain factual information only and are prepared without considering particular objectives, financial circumstances and needs. The information provided is not a substitute for legal, tax and financial product advice. The information contained in this document does not constitute advice given by the SMSF Association to you. If you rely on this information yourself or to provide advice to other persons, then you do so at your own risk. The SMSF Association is not licensed to provide financial product advice, legal advice or taxation advice. We recommend that you seek appropriate professional advice before relying upon the information in this technical paper. While the SMSF Association believes that the information provided is accurate, no warranty is given as to its accuracy and persons who rely on this information do so at their own risk. The information provided in this paper is not considered financial advice for the purposes of the Corporations Act 2001. © SMSF Association