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New South Wales - Pay-roll tax exemption - 17 November 2005
Guidance on transition to retirement pensions - Australia Payroll News
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The Tax Office has clarified how transition to retirement pensions will be treated. The general anti-avoidance provisions will not apply where taxpayers are simply commencing a transition to retirement pension, and making salary sacrifice contributions to superannuation.
The transition to retirement measure was introduced to allow eligible Australians to access their superannuation through an income stream without having to retire permanently from the workforce.
Some strategies have encouraged people to draw down on their superannuation by accessing a transition to retirement pension while, at the same time, making payments under salary sacrifice back into their retirement savings. Under these arrangements the pension provides an additional source of income, while salary sacrifice tops up the taxpayer's retirement savings.
The Tax Commissioner has confirmed that such arrangements, entered into in a straight forward way, are consistent with the operation of the law. Anti-avoidance rules would only be applied if accessing the pension or undertaking the salary sacrifice were artificial or contrived.
...back to 17 November 2005
Further information:
Guidance on transition to retirement pensions
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