Anti-detriment Payment SMSF
What is Anti-detriment payment and how does it affect your SMSF?
An anti-detriment payment is an additional lump sum payment that can be made from a complying super fund on the death of a member to a:
- Trustee of the deceased estate
- Spouse or former spouse of the deceased
- Child (including an adult child) of the deceased.
An anti- detriment payment is not available where the death benefit is paid as a pension.
The anti- detriment payment increases the deceased member’s lump sum death benefit to negate the effect of tax while the member’s benefit was accumulating in the fund. If the SMSF pays an anti-detriment payment, the trustee can claim an income tax deduction.
To ensure this claim is made correctly, trustees must claim the deduction in the financial year in which the lump sum is paid. The lump sum should be paid as soon as practicable following the death of the member.
This deduction can be used to reduce the tax payable by the fund in the year of the payment. Alternatively, if a tax loss is generated, it can be carried forward to future years. Trustees of SMSFs should consider whether the fund is expected to generate sufficient taxable income to use this deduction.
ATO recommends you seek advice from a licensed financial adviser, accountant or your tax agent before making any anti-detriment payments.
For any SMSF questions, please contact SuperHelp on 1300 736 453.
Article Disclaimer: This information should not be considered personal financial advice as it is intended to provide general advice only. The article has been prepared by Superhelp Australia Pty Ltd without taking into account your personal objectives, financial situations or needs.
The information contained in the article may not be appropriate to your individual needs therefore you should seek personal financial advice before making any financial or investment decisions.
Book Your Free SMSF Consultation
Book your free consultation with me to find out if SMSF is right for you. If you have any other questions, we are happy to help!
Why is SMSF Set up so affordable at SuperHelp?
SuperHelp has been servicing the SMSF market for over 15 years. We pride ourselves on being able to provide an affordable SMSF service without compromising on quality. One of these services is to provide new members with setting up their SMSF at an affordable fee when they use our award winning service.
Do I need to use a specific bank, broker or provider?
Unlike other SMSF administrators and accountants we do not restrict you to what bank, broker or service provider you use. We are independent and do not take any commissions from other parties so that our clients can invest their super where they please.
How long has SuperHelp been around for?
SuperHelp have been around since 2002 - so over 15 years! While new SMSF administrators have come and gone, we are still around!
How much is your ongoing annual administration fees?
Our first year introductory offer for new SMSF or transferred SMSF are $899 + GST regardless of asset types. Subsequent years are dependent on the number of assets and asset types you have - please use our calculator to estimate your fee. You will find that our fees are very reasonable to the quality provided within the SMSF market.
Do you have an SMSF newsletter that I can sign up to?
Yes! We send out a quarterly SMSF newsletter to all of our clients and anyone interested in SMSF. You can sign up here :
Do you offer any other SMSF services?
Yes we do! You can see a full list of SMSF services on our services page.
Contact Us
SuperHelp is located in Macquarie Park, NSW however we work with clients all around Australia.