Issue
Whether superannuation funds are required to provide an actuary's certificate to obtain the exemption under section 282B of the Income Tax Assessment Act 1936 (ITAA 1936) on income derived from segregated pension assets.
Decision
Superannuation funds are required to provide an actuary's certificate to obtain the exemption under section 282B of the Income Tax Assessment Act 1936 (ITAA 1936) on income derived from segregated pension assets.
Facts
The trustees of a complying superannuation fund sought exemption from the requirement to provide an actuary's certificate under section 273A (ITAA 1936).
Reasons For Decision
Under section 282B (ITAA 1936) assessable income derived by a complying superannuation fund on segregated pension assets are exempt from tax.
The assets of a complying superannuation fund are taken to be segregated pension assets when the conditions in section 273A are met. Firstly, the assets must be invested, held in a reserve or dealt with for the sole purpose of enabling the fund to discharge the whole or part of the current pension liabilities when they become due. And secondly, the trustee of the fund must obtain an actuarial certificate before the date of the certificate's effect stating that the actuary expects that the assets are sufficient, if accumulated and having regard to expected earnings, to meet the amount required to discharge, in full or in part, the current pension liabilities as they fall due.
The Commissioner has no discretion to disregard these provisions.