In this week’s podcast, Aaron discusses the Australian Taxation Office’s (ATO) change in view in calculating exempt current pension income (ECPI) from 1 July 2017, in particular where a SMSF’s assets are segregated for part of an income year.
He explains the implications for practitioners of the ATO’s revised approach in calculating the earnings tax exemption, along with the concession available in determining ECPI in the 2016-17 income year. Importantly, Aaron highlights the key issues and opportunities from the ATO’s ‘shift away’ from the standard industry practice in calculating ECPI in accordance with section 295.390 of the ITAA 1997 (i.e. obtaining an actuarial certificate to determine tax exemption).
You can read further information about the ATO’s revised approach in claiming tax exemption here.