This is part two of our series on the importance of ‘retirement’ which takes a deep dive into the definition of ‘retirement’ and considers the key elements which need to be satisfied. You can read part one here to get a better understanding of why the definition of retirement is so important and may need to be revisited even though it’s been around for so many years.
This edition of Technically Speaking, written by the Association’s Technical Manager, Mary Simmons, delves further into the definition of ‘retirement’ including:
- Highlighting the intrinsic link to a member’s preservation age,
- Exploring the different requirements for members under the age of 60 and for those already 60 but not yet 65,
- Breaking down the three key elements that a member must satisfy,
- Analysing the ATO’s interpretative views; and
- Outlining the compliance options available to the Commissioner if trustees get it wrong.
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