Segregation of assets in pension mode is the latest to be under the ATO’s microscope, with the release of Draft Taxation Determination TD 2013/D7. The first thing to be aware of is that the value of an asset supporting a pension, cannot be greater than the pension liability.
The second point to note is that the ATO will be on the lookout for strategies where an asset sold for a considerable capital gain soon after a pension is set up to see whether the strategy is basically for tax avoidance.
The third point to note is that an identifiable, discreet, indivisable asset cannot be partly segregated.
