One day every people has to get retire and rest the retirement life with full of benefits , But to do this it will require Proper planning and knowledge of different Government legislation on your income. Today I am going to discuss about one of tax exempt income certificate called Actuarial certificate.
In the retirement age, we can use our super benefits and we can transfer this balance to pension phase. To do this we have to make pension agreement and we can get pension payment from superannuation income. But the income from pension is to be minimum and is tax free. All the income of the fund is not tax free. AS some people are still working at this age, but SIS regulation do not allow trustees to add more exempt income in pension account, all this new earning income goes to newly created accumulation account.
Any income from assets which has super income benefits to member is exempt from income tax and it is referred as Exempt current Pension income (ECPI). All SMSF can not claim ECPI, that must be segregated pension assets or assets are not Segregated and there is role of this certificate comes in Picture. Before some one lodge income tax they need to obtain Actuarial certificate.
The major benefit of this certificate is to get Income tax exemption under the section 295-390 ITAA, under this act we can exempt the pension income from tax with having of actuarial certificate and this actuarial certificate [http://www.trustdeed.com.au/actuarial-certificate.html] gives you figure of tax exempt income in percentage and taxed income.
There are more benefits of actuary certificate but major benefits is that you do not have to go to Actuary and calculate your tax exemption amount but now there are many companies who provide online actuarial certificate, and it is very straight forward and Easy. We just need to give simple Questions and enter the Amount for Pension and Accumulation and we will send you certificate in your mail, We are one of the certificate Provider in Australia and you get do it yourself.
About Author:
I have worked in SMSF industry for the past 22 years as a tax agent (since 1995 - 15 years), accountant and Auditor. I have helped over 2000 trustees to set up their own funds and currently audits more than 400 funds each year for various accounting firms which puts him in the top 54 SMSF Auditors (as per ATO) in Australia. I have in depth knowledge for company registration, smsf, Unit trust, fixed unit trust, Discretionary trust and Actuarial certificate in Australia.