What you need to know about property tax

Investing in a property or buying your dream home is an exciting and rewarding experience. But one of the not-so-exciting, but crucial parts of any property purchase is the calculation and payment of one or more different kinds of tax. It is recommended that buyers receive proper advice on which taxes are payable and how much before the purchase, otherwise buying your dream home or investing in a property can become a very unrewarding and financially crippling experience.

So, what is included in property-related taxes? These taxes include municipal rates and charges for refuse and sewerage. We will discuss these taxes in more detail below:

Municipal rates

Most South African property owners must pay municipal rates, which are based on the market value of the property concerned. The calculation of municipal rates was changed in March 2004, when the Government Municipal Property Rates Bill came into play.

Previously, rural areas were charged a higher percentage than the wealthier areas, seeing as lower-income households effectively subsidised wealthier ones. Now, rates are levied at a common percentage (about 1%) irrespective of the value of the property. However, municipalities may levy different rates for different types of properties such as residential, commercial etc. When it comes to sectional title schemes, rates are applied to the entire scheme and are divided among the individual owners.

So how does it work? Your municipality will send you a valuation notice, which states the official value of your property. Using this valuation notice, subtract the specified “rate-free” amount (around R50 000), then multiply this net figure with the percentage of the municipal rate to calculate the annual amount payable. Divide this by 12 to calculate your monthly payment.

Refuse

Just like municipal rates, refuse charges vary from place to place. For example, in Cape Town, there are two parts to the refuse charge:

The first is calculated by subtracting R50 000 from the valuation of the property (same as with municipal rates) and multiplying the result by 0.038%.

The second part is a charge of R38.60 per month for a 240-litre bin with wheels. If your property is valued at less than R100 000, you pay half of the amount mentioned above, and if your property is valued at less than R50 000, you will receive a bin free of charge.

Sewerage

Just as is the case with refuse charges, sewerage is also commonly charged in two parts:

Firstly, a fixed charge of up to R38.00, depending on the value of your property.

Secondly, a variable charge according to your water consumption. See the table below:

Annual Consumption Charge Per ‘000 Litres
0 – 4,200 litres
4,201 – 14,000 litres R2.04
14,001 – 35,000 litres R3.25

 

So, to break it down a little, if you consumed 200 000 litres in a year, you would pay R650.00 plus the fixed rate.

Before purchasing a property, make sure to consult an expert in order to determine how much you will have to pay in property taxes, and make sure to bring this into your budget before purchasing.

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE)

Your payroll administration questions answered

As payroll administrators ourselves, we encounter a few frequently asked questions that employers, business owners or those responsible for payroll administration within organisations struggle with.  Below we have a detailed answer for you on these burning questions you are facing.  We hope that you find them insightful.

  1. Question: At what stage is an employer required to register for PAYE and UIF with the South African Revenue Service?

Answer: An employer is required to register for PAYE and UIF the moment he/she employs an employee whose salary exceeds the tax threshold.  For the 2020 tax year, this threshold is R 79 000 per annum.

  1. Question: If an employer is already registered with SARS for UIF, does the employer also have to register with the Department of Labour for UIF purposes?

Answer: Yes. Although UIF payments are made to SARS and not to the Department of Labour, UIF Registration with the Department of Labour still needs to be completed and a UI19 form, in which the employer declares the amounts paid over to SARS, must be submitted monthly.  The UI19 form can be submitted via e-mail.

  1. Question: At what stage is an employer required to register for SDL (Skills Development Levy) with SARS?

Answer:  An employer is required to register for SDL as soon as the total gross salaries of the organisation (all employees’ salaries) for any 12-month period exceeds R 500 000. Please note that SDL can only be claimed back for training provided from the relevant SETA to which the organisation belongs when the total salaries exceed R 500 000.

  1. Question: I have submitted my W.As. 8 return to the Department of Labour but didn’t receive my W.As. 6 assessment. Why is this happening?

Answer: In most cases where this happens, we find that the e-mail address of the company is completed incorrectly on the return. For many organisations, this has resulted in significant amounts of interest incurred on these amounts.  The original returns are no longer sent to organisations via post and are only sent via e-mail.

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE)

Cryptocurrencies: The new generation’s cash

Background to Bitcoin

Bitcoin, Ether and Litecoin. These are some of the most prominent cryptocurrencies on the market today. Bitcoin is by far the best-known cryptocurrency due to the substantial increase in the price that was experienced in the past couple of years.

Bitcoin is a cryptocurrency – a digital asset designed to work as a medium of exchange that uses cryptography to control its creation and management, rather than relying on central authorities. Bitcoin was developed by an anonymous creator – Satoshi Nakamoto – to enable society to operate with a digital cash system, without the need for third-party intermediaries which are traditionally required for digital monetary transfers.

Should you wish to read the original paper used to introduce bitcoin to the word, please follow this link:  https://bitcoin.org/bitcoin.pdf.

Tax consequences of cryptocurrencies

For the most part, South Africans have only been able to enter the crypto market locally for a short while, which has drawn the attention of the South African Revenue Service (SARS) to cryptocurrencies.

SARS released a statement on the 6th of April 2018, declaring its stance regarding the taxation of cryptocurrencies. The following is an extract from the statement:

The South African Revenue Service (SARS) will continue to apply normal income tax rules to cryptocurrencies and will expect affected taxpayers to declare cryptocurrency gains or losses as part of their taxable income.”

The statement further indicates that for purposes of the Income Tax Act, SARS does not deem cryptocurrencies to be a currency (due to the fact that wide adoption has not been reached in South Africa and crypto can’t be used on a daily basis to transact), but rather defines cryptocurrencies as assets of an intangible nature.

The definition has the effect that cryptocurrencies will be treated as any other investment for tax purposes. The onus lies on the taxpayer to declare all cryptocurrency-related taxable income in the tax year which the taxpayer received or accrued.

Should a taxpayer thus trade in bitcoin, the trades will be deemed to be income in nature and the profit and loss on the trades should be included in the taxpayer’s taxable income. However, if the taxpayer holds the bitcoin as a long-term investment (the same way some investors hold a share portfolio for long-term investing), the income derived from the disposal of the bitcoin will be deemed to be capital in nature, resulting in capital gains tax needing to be declared on the disposal.

Conclusion

Whether you are for or against cryptocurrencies, it is evident that cryptocurrencies have formed a part of the modern era and will likely remain relevant. This new form of currency/investment has caused quite a stir at SARS and taxpayers are advised to familiarise themselves with the tax treatment of these currencies to prevent any unexpected tax consequences.

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE)

The different VAT supplies

There are a few instances where VAT is not charged at the standard rate of 15%. In the following newsletter, we distinguished between the different supplies that attract VAT but does not necessarily have the impact of a standard rate supply.

Denied Supplies

The VAT Act provides for certain expenses where input VAT is denied, even if the expense is incurred in the course of conducting an enterprise and if there are no input VAT consequences there will ultimately be no output VAT consequences. The following circumstances are common instances where input VAT will be denied:

  • Acquisitions of a motor vehicle:

When a motor vehicle is purchased by a vendor, who is not a motor car dealer or car rental enterprise, the input VAT on the purchase will be considered a denied supply.

The definition of “motor vehicle” includes all vehicles designed primarily for the purposes of carrying passengers. This definition covers ordinary sedans, hatchbacks, multi-purpose vehicles and double cab bakkies. A single cab bakkie or a bus designed to carry more than 16 persons will qualify for input VAT purposes.  Any repairs and maintenance to vehicles, irrespective of the type of vehicle, will also qualify for the claiming of input VAT, as long as the cost is separately identified and invoiced.

  • Fees and Club Subscriptions:

Input tax in terms of subscriptions/membership fees to sport, social, recreational and private clubs are denied supplies. Input VAT may, however, be deducted on subscriptions to magazines and trade journals which are related in a direct manner to the nature of the enterprise carried on by the vendor.

However, fees for membership of professional bodies and trade organisations paid on behalf of employees are not denied supplies and SARS allows an input VAT to be claimed. Trade unions are exempt in this regard.

In the case of denied supplies, no VAT may be claimed, and no output VAT needs to be declared, thus these supplies don’t need to be declared on your VAT return.

Zero-Rated Supplies

A zero-rated supply is a taxable supply, but VAT is levied at 0%. Vendors who make zero-rated supplies are still able to deduct input tax on goods or services acquired in making of the zero-rated supplies.

Zero-rated supplies include certain basic foodstuffs such as brown bread and maize meal, certain services supplied to non-residents, international transport services, municipal property rates and more.

Although a zero-rate supply is levied at 0%, it is still a taxable supply and should be declared separately on the VAT return.

Deemed Supplies

A vendor may be required to declare an amount of output tax even though they have not actually supplied any goods or services. Deemed supplies will generally attract VAT at either standard rate or zero rate.

Two common examples of deemed supplies at standard rate are trading stock taken out of the business for private use and certain fringe benefits received provided to employees.

The deemed supply will be declared on the VAT return under either your standard rate or zero-rate codes.

Notional input VAT

A VAT vendor may in certain circumstances deduct a notional input VAT credit in respect of secondhand goods acquired from non-vendors where no VAT is actually payable to the supplier.  Second-hand goods exclude animals, certain mineral rights and goods containing gold or consisting solely of gold.

The following requirements must all be met for a notional input credit to be deductible in respect of secondhand goods:

  • Goods must be previously owned and used (as per the second-hand good definition in section 1 of the Act) and
  • Goods must be used to generate taxable supplies and
  • The seller must be a resident non-vendor and
  • Goods must be located in South Africa and
  • There must be no actual VAT levied on the transaction.

It is important to keep all the documentation for all types of supplies for VAT purposes and to have it available as SARS may require it to confirm VAT transactions.

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE)

Becoming a Chartered Accountant

The process of becoming a chartered accountant can be a gruelling and challenging part of your life, just ask any chartered accountant out there. Becoming a CA(SA) requires a minimum of four years of studies and three years internship that can be split into six steps:

Admission to university

To get admission to university for charted accountancy requires you to get good marks in mathematics and accounting during your grade 12 school year. This will form the base of your knowledge and, while the actual subject content is not earth-shatteringly useful, the logic and process of thinking are vital. An average of 70% for both these subjects will most likely ensure you get admission to some of the better universities in South Africa.

Degree

Enrol at university for a three-year degree towards becoming a CA(SA). Most commonly known as a B.Com Accounting or B.Com Chartered Accountancy degree. During the third and final year of your degree, you will be required to achieve high enough marks to get admission to CTA (Certificate in the Theory of Accounting), which is also your Honours year. This can sometimes be a struggle seeing as you are required to put in long hours while university life happens.

Honours year

Your CTA year can be done at university or part-time while doing your internship at a SAICA approved training office through UNISA. Some training offices even allow you to complete your degree while completing your internship. This will in some cases require that the trainee do a four-year internship contract and not the normal three-year contract. There are various after-hours part-time support programs to enrol in when doing your CTA and internship together.

Both the degree and CTA are challenging and require a lot of time and effort. Carefully consider whether you will manage to do your studies part-time while working. The pass rate for CTA while working is normally less than 20% per year, however, if you are willing to put in the hard yards, it is attainable.

Internship

After successfully completing your CTA at university, you are now required to complete a three-year internship at a SAICA accredited training office. During these three years, SAICA requires you to show competence in certain technical and soft skills. You will also need to spend a minimum number of hours on core work to show competency in the auditing environment.

Board exams

After completing CTA successfully, you will need to write two board exams and pass both to become a CA(SA). The first board exam is known as the Initial Test of Competence (ITC). You can write this test directly after completing your CTA. The second exam is known as the Assessment of Professional Competence (APC). You become eligible to write the APC exam after completing 18 months of your training contract.

CA(SA)

After successfully completing all of the above and your training office assessor signs your training contract, you can register at SAICA as a CA (SA). Once approved, you are a chartered accountant.

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE)

Is there tax on gift cards?

The Cape Town Tax Court delivered a judgement on 17 April 2019 on the timing of income tax in relation to gift cards issued by a retailer.[1]

Here, the taxpayer “sold” gift cards to its customers to be redeemed at any of the taxpayer’s stores. The question under consideration was whether the revenue from the “sale” of the gift cards constituted “gross income” for purposes of the Income Tax Act[2] as soon as it was received by the taxpayer, or only when the gift card was redeemed or has expired.

In terms of section 1 of the Income Tax Act,[3] a taxpayer must include in “gross income” all amounts “received by or accrued to or in favour of” that taxpayer. Initially, the taxpayer included all amounts received in respect of the gift cards in the year in which the cards were issued and paid for.

However, the Consumer Protection Act (“CPA”)[4] came into effect with specific provisions on the treatment of gift cards. It stated that any consideration paid by a customer to a supplier for a gift card is the property of the bearer of the card until the supplier redeems it. Also, a supplier may not treat any prepayments in its possession as the property of the supplier.[5]

As from 2013, the taxpayer, therefore, transferred the revenue from the gift cards to a separate bank account until such time as the cards were redeemed or become expired and accounted for these amounts in its financial records as an unredeemed gift card liability.  The taxpayer also did not include these amounts in its “gross income” at the time of the “sale” based on the argument (and irrespective of the CPA provisions) that the money was not received by the taxpayer for its own benefit, but was held for the benefit of the card bearer. Secondly, the effect of the CPA provisions rendered it inconsistent with being “gross income” for income tax purposes.

The Court found that the mere segregation of monies in a separate bank account did not by itself mean that the funds were somehow held “in trust” for the benefit of the cardholders as opposed to the taxpayer. However, the result of the CPA and the treatment of these amounts in order to comply with its requirements was that the taxpayer did not receive such monies for its own benefit until the cards were redeemed. The Court held that these receipts therefore only constituted “gross income” when it was redeemed or had expired.

[1] Reported as A Company vs The South African Revenue Service (IT24510) [2019] ZATC 1 (17 April 2019).

[2] 58 of 1962

[3] See definition of “gross income”

[4] 68 of 2008

[5] See sections 63 and 65 of the CPA

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE)

Income vs Revenue in the sale of shares

The distinction between amounts of a capital nature as opposed to a revenue (or income) nature is essential, and over the years, few other topics have enjoyed so much attention in our tax courts. Although most taxpayers appreciate this distinction, it is essential to revisit the core principles from time to time, to ensure that taxpayers are not caught off-guard when accounting for the tax on the sale of shares.

Non-capital amounts are subject to tax at a higher effective rate compared to capital profits. The difference arises from the annual exclusion that applies to capital gains for natural persons, and the inclusion rate applied to it. In the case of natural persons, the maximum effective rate for capital gains is 18% (compared to 45% on revenue gains); companies are taxed at 22.4% (compared to 28%) and trusts at 36% (compared to 45%).

The departure point for the analysis is how long a person has held the shares. In terms of 9C of the Income Tax Act, 58 of 1962 (the Act), where shares have been held for a period of at least three years, the amount received in respect of the share sale will automatically be deemed to be of a capital nature. Consequently, any gain would constitute a capital gain. Section 9C does not require an election, and its application is automatic and compulsory. Importantly, profits on the disposal of shares held for less than three years is not automatically of a revenue nature. The nature of such profits must be determined using the general capital versus revenue principles. Apart from the three-year holding rule in section 9C, the Act does not provide objective factors to distinguish between capital and revenue gains on share disposals. General principles for making this distinction have been formulated in courts over many years.

A person’s intention (both at the stage of purchase and disposal) is the essential factor in determining the nature of profits. If shares were acquired with mixed intentions (bought partly to sell at a profit and partly to hold as an investment), the person’s intention would be determined by the dominant or main purpose. South African courts have held that a taxpayer’s evidence as to intention must be tested against the surrounding circumstances of the case, which include, amongst other things, the frequency of transactions, method of funding and reasons for selling.

Where shares have been purchased and sold as part of a profit-making scheme, gains will be regarded as revenue in nature. In this regard, although not conclusive, the frequency and scale of share transactions is an important consideration. Where shares are bought regularly for the main purpose of resale at a profit, it will be regarded as trading stock and profits will be revenue in nature. An occasional sale of shares yielding a profit suggests that a person is not a share trader engaged in a scheme of profit-making. Where profits have been made through the mere realisation of investment, there is no scheme of profit-making. Although it is possible that a once-off venture involving the acquisition of shares can comprise a venture resulting in the shares becoming trading stock, the “slightest contemplation of a profitable resale” is not necessarily determinative for a gain to be revenue in nature.

Profits on the disposal of shares acquired for long-term capital growth and dividend income will more likely be capital in nature. Shares sold for a profit very soon after the acquisition is, in most cases, an indication of the potential revenue nature of those profits. However, that measure loses a great deal of its importance when there has been some intervening act, for example, a forced sale of shares.

Taxpayers are encouraged to take careful note of the distinction between income and capital gains since a different interpretation by SARS could result in a lengthy (and costly) dispute.

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE)

Section 7C of the Income Tax Act: Exclusions

Section 7C of the Income Tax Act, No 58 of 1962 (the Act), was enacted effective 1 March 2017 and serves as an anti-avoidance measure aimed at curbing the tax-free transfer of wealth to trusts through the use of low interest or interest-free loans, advances or credits. The Explanatory Memorandum on the Taxation Laws Amendment Bill 2017 indicates that a loan, advance or credit is often used as a means of transferring wealth from an individual to a trust, often with the trust not having any intention of repaying anything and leaving the loan, advance or credit in place indefinitely.

The provisions of section 7C, therefore, apply in respect of any loan, advance or credit that a natural person, or at the instance of that natural person, a connected company, has directly or indirectly provided to a trust, or a company under certain circumstances. Should none of the exclusions in section 7C apply and the loan, advance or credit does not carry interest or carries interest at a rate lower than the “official rate of interest”, a deemed donation to the trust arises. The value of the donation is the difference between interest actually charged, and interest that would have been charged, had the “official rate of interest” applied.

Section 7C(5) contains eight exclusions, where a loan, advance or credit will not be subject to the onerous consequences as outlined above, despite meeting the criteria of section 7C.

One of the more pertinent exclusions is where the loan was used by a trust or company (wholly or partly) for purposes of funding the acquisition of an asset that is used by the natural person (or their spouse) as a primary residence. Section 7C(5)(d), does not contain any “ownership” requirements, merely a “use” requirement. Therefore, as long as the relevant persons used the asset as a primary residence, the exclusion applies. Importantly, the exclusion in section 7C(5)(d) contains a time and amount restriction and only applies if the residence was used as a primary residence throughout the period during a year of assessment during which the trust held the asset and only to so much of the loan, as was used to fund the immovable property.

There is some uncertainty on whether a loan that funded improvements or additions to the primary residence will qualify for the exemption since the Act merely refers to the “acquisition” of an asset. Taxpayers should, therefore, seek appropriate advice before relying on the exclusion in these circumstances.

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE)

Tax season 2019: what can you expect?

SARS recently released two media statements, in which it notes several improvements made to eFiling for the 2019 tax season, including the issue of customised notices indicating specific documents required in the event of an audit or verification and a simulated outcome issued before a taxpayer has filed.

What is the tax season?

Tax season is the period in which individual taxpayers file their income tax returns to ensure that their affairs are in order. Although the majority of taxpayers who earn a salary have already paid tax through monthly pay-as-you-earn tax (PAYE), which was deducted from their salary by their employer and paid over to SARS, employees may still have an obligation to file a tax return if they earn above the filing threshold (see in more detail below). Once SARS reconciles what was paid over by the employer with what a taxpayer declares on their tax return, an assessment is issued which may result in the taxpayer needing to pay an additional tax to SARS, or is due a refund, or neither.

Taxpayers who are natural persons and meet all of the following criteria need not submit a tax return for the 2019 filing season:

  • Your total employment income for the year before tax is not more than R500 000;
  • Your remuneration is paid from one employer or one source (if you changed jobs during the tax year, or have more than one employer or income source, you must file);
  • You have no car or travel allowance, a company car fringe benefit, which is considered as additional income;
  • You do not have any other form of income such as interest, rental income or extra money from a side business; and
  • Employees tax (i.e. PAYE) has been deducted or withheld

Although you are not required to submit a tax return if you meet the above criteria, it is always good practice to ensure that you have a complete filing history with SARS. If your tax records do ever become important in future (such as in the case of remission of penalties, tax clearance certificates, etc.), you do not want to be in a position to have to prove that you were not liable to file a return in a particular year. The administrative burden in the current year certainly outweighs the potential issues down the line.

Important filing dates

  • eFiling opens on 1 July 2019 and closes on 4 December 2019.
  • Manual filing at branches opens on 1 August 2019 and closes 31 October 2019.
  • Provisional taxpayers have until 31 January 2020 to file via eFiling.

There is already a steady increase in the number of taxpayers in queues at SARS branches – it is therefore advised that you engage with your tax practitioner as soon as possible, to plan for tax season 2019.

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE)

2019 Tax legislative amendment: retirement funds

The 2019 tax legislation amendment cycle commenced on 25 June, when National Treasury issued the initial batch of the Draft Taxation Laws Amendment Bill which covers specific provisions that require further consultation. National Treasury will be publishing the full text of the 2019 Draft Taxation Laws Amendment Bill for public comment in mid-July 2019. One of the topics for amendment in the first batch deals with aligning the effective date of tax-neutral transfers between retirement funds with the effective date of retirement reforms, which is 1 March 2021.

The Income Tax Act[1] contains, in section 11F, similar tax treatment for the deductions from taxable income for contributions to pension funds, provident funds and retirement annuity funds. Previously, contributions to these funds were treated differently from income tax purposes.

Further retirement fund reforms intended to harmonise the treatment of different retirement funds, deal with the annuitisation requirements for provident funds. The primary objective of the 2013 amendments was to enhance preservation of retirement fund interests during retirement and to have uniform tax treatment across the various retirement funds, resulting in provident funds being treated similarly (as the case is with deductions) to pension funds and retirement annuity funds concerning the requirement to annuitise retirement benefits. These retirement fund reform amendments were supposed to come into effect on 1 March 2015. Parliament, however, postponed the effective date for the annuitisation requirements for provident funds initially until 1 March 2016, then until 1 March 2019 and eventually 1 March 2021.

Each postponement of the effective date requires several consequential amendments to various provisions of the Act. However, certain provisions were inadvertently left out in paragraph 6(1)(a) of the Second Schedule to the Act (dealing with the tax-neutral transfers between retirement funds). Failure to change the effective date in the provisions resulted in the non-taxable treatment of transfers from pension funds to provident or provident preservation funds taking effect from 1 March 2019.

The earlier effective date of 1 March 2019 for the tax neutral transfers from pension to provident or provident preservation funds creates a loophole as the intention was to align the effective date of the tax-neutral transfers from pension to provident or provident preservation funds with the effective date of retirement reform amendments, which is 1 March 2021.

To correct the inadvertent oversight, it is proposed that changes be made in the Act to align the effective date of the tax-neutral transfers from pension to provident or provident preservation funds with the effective date of retirement reform amendments, which is 1 March 2021.

Since these amendments appear to be inserted to correct an oversight, it is not expected that they will be met with much criticism from the industry. The public comment period is, however, open if the amendments do create some other unintended consequences.

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE)