Submitted by
Moderator - Board of Taxation Secretariat
Date
17/03/2016
Issue
In order for income of a Superannuation fund to be treated as exempt current pension income (ECPI) and therefore be exempt from income tax, section 295-385 of the Income Tax Assessment Act 1997 requires the trustee of the fund to obtain an actuary's certificate. Obtaining such a certificate is burdensome both from a timing and compliance cost perspective. Propose a statutory formula be developed in place of this requirement.
Board response
This idea was submitted to the Board prior to the launch of Sounding Board. The Board understands that the proposal has the potential to significantly reduce compliance burdens for affected taxpayers. Treasury and the ATO are in discussion to examine the idea further.