ATO Interpretative Decision
ATO ID 2001/13 (Withdrawn)
Complying superannuation fund - Segregated pension assets - Is actuary's certificate required?
FOI status: may be released
Status of this decision: Decision Withdrawn 31 March 2006
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This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Whether superannuation funds are required to provide an actuary's certificate to obtain the exemption under section 282B of the Income Tax Assessment Act 1936 (ITAA 1936) on income derived from segregated pension assets.
Superannuation funds are required to provide an actuary's certificate to obtain the exemption under section 282B of the Income Tax Assessment Act 1936 (ITAA 1936) on income derived from segregated pension assets.
The trustees of a complying superannuation fund sought exemption from the requirement to provide an actuary's certificate under section 273A (ITAA 1936).
Reasons For Decision
Under section 282B (ITAA 1936) assessable income derived by a complying superannuation fund on segregated pension assets are exempt from tax.
The assets of a complying superannuation fund are taken to be segregated pension assets when the conditions in section 273A are met. Firstly, the assets must be invested, held in a reserve or dealt with for the sole purpose of enabling the fund to discharge the whole or part of the current pension liabilities when they become due. And secondly, the trustee of the fund must obtain an actuarial certificate before the date of the certificate's effect stating that the actuary expects that the assets are sufficient, if accumulated and having regard to expected earnings, to meet the amount required to discharge, in full or in part, the current pension liabilities as they fall due.
The Commissioner has no discretion to disregard these provisions.
Date of decision: 15 July 1998
Income Tax Assessment Act 1936
Related Public Rulings (including Determinations)
Segregated pension assets
Current pension assets
Current pension liabilities
Complying superannuation fund
Business Line: Superannuation
Date of publication: 4 June 2001