Rewritten rules raise bar for income test exemption
I UNDERSTAND the Government has made changes to Superannuation Defined Benefit Pensions by cutting the percentage rate, and this will affect the income test used to determine eligibility for a government pension.
I am 63, receive $ 1511 each fortnight from a Defined Benefit Pension, but I am not yet eligible for a government pension. When that time comes, how will this percentage change affect me in regard to the income test?
As part of a general tightening of pension eligibility the Government has reduced the amount of defined benefit pension that will be exempt from the income test to 10 per cent of the value.
Whether you will be affected by the new rules will depend on the type of defined benefit you currently receive. If it’s an unfunded government defined benefit pension you will be unaffected by the change, but if you have a fully or partly funded scheme, the impact on you will be affected by the pre83 service period and the mix of taxable and non- taxable component. It would be wise to talk to a good adviser sooner rather than later, as there are many factors to consider as you approach retirement. ON my death my shares are bequeathed to my wife. Would an off- market transfer then be required? Also, my wife and I hold shares jointly. On my death would an off- market transfer then be required? Dividends are paid into our joint bank account, which would be changed to an account in my wife’s name.
When finalising estates a letter of instruction is usually sent from the beneficiary of the will to the broker where the stock is held.
The broker holding the stock will act on these instructions, whether it be to liquidate the stock, transfer to another broker’s HIN or to transfer the stock to Issuer Sponsored.
There will be no need for an off- market transfer. If it is a single account, a letter of instruction from the executor will be sufficient in lieu of offmarket transfers.
If it is a joint holding, the shares are automatically transferred to the survivor on receipt of the death certificate, so no off- market transfer or letter of instruction is required.
Dividend payment changes would need to be supplied direct to the share registries.
Whether you will be affected by the new rules will depend on the type of defined benefit you currently receive