Account Based Super Account

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JM_84 · Answer

Unfortunately, it sounds like you need to go back to Australian Super. You have indicated that the reversionary pension was stopped and moved to accumulation phase. Under the legislation, as this amount is a death benefit, it cannot be moved into the accumulation phase. It also cannot be pooled with your own personal superannuation savings. Here is link from ATO website which includes the following information: Death benefits can be rolled into another fund. However, the new fund must start a death benefit income stream or pay the amount out of super as a lump sum (or a combination of these). The death benefit cannot be retained in accumulation phase. Death benefits that are rolled over will not lose their death benefit tax treatment. Superannuation death benefits | Australian Taxation Office (ato.gov.au) (https://www.ato.gov.au/Individuals/Super/Withdrawing-and-using-your-super/Superannuation-death-benefits/#:~:text=Death%20benefits%20can%20be%20rolled%20into%20another%20fund.,will%20not%20lose%20their%20death%20benefit%20tax%20treatment.) Another issue raised is that Australian Super has indicated that the ATO made the request. It can arise if the total amount you hold in the retirement phase of super (the 0% tax environment) exceeds your transfer balance cap. This looks at all superannuation savings that are held in the super income streams (such as a defined benefit income stream or account based pensions). If this has occurred, the ATO would have contacted you in the first instance. the super fund is only approach after a set period of time where you have not either objected to that determination or no election has been made. Excess transfer balance | Australian Taxation Office (ato.gov.au) (https://www.ato.gov.au/Individuals/Super/Withdrawing-and-using-your-super/Retirement-withdrawal---lump-sum-or-income-stream/Excess-transfer-balance/) I appreciate that our super system is rather complex. Hopefully your super fund can assist in providing general guidance, particularly in relation to the reversionary income stream.

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