April 2025

BGL Corporate Solutions is helping SMSF professionals navigate the complexities of legacy pension conversions as the Government introduces opportunities to transition to more flexible and sustainable retirement options.

From 7 December 2024, the Government announced new legacy pension conversion rules, including a five-year amnesty for the commutation of market-linked pensions, lifetime complying pensions and life expectancy pensions. With this change to simplify pension structures, SMSF professionals must carefully manage pension commutations, tax implications and compliance requirements to ensure a smooth transition.

Jeevan Tokhi, General Manager of Product at BGL said, “With this reform, SMSF professionals will need to be equipped with the right tools and knowledge. Technology will play a critical role in ensuring compliance and streamlining administration. BGL’s Simple Fund 360 simplifies SMSF for all administration, especially pensions. Our partnership with Smarter SMSF allows professionals access to expert documentation, calculators and ongoing education to ensure they have confidence navigating these changes”.

“The ability to transition out of legacy pensions is an important shift for SMSFs, but it also brings complexity,” says BGL’s Chief Executive Officer, Daniel Tramontana. “Professionals will need access to the right tools and support to manage any changes efficiently while ensuring compliance with ATO regulations.”

Aaron Dunn, CEO and Co-founder of Smarter SMSF added, “The introduction of the five-year amnesty is a major step for SMSFs and we are proud to support professionals through these changes. We emphasise the need for accurate data management and streamlined reporting in legacy pension conversion. To support this transition, our long-standing partnership with BGL allows us to deliver a seamless solution to help firms manage this transition”.

Key benefits of BGL’s Simple Fund 360 and Smarter SMSF’s solution for legacy pension conversion:

• Expert Documentation and Compliance Support: Access Smarter SMSF’s comprehensive documentation and resources to ensure accurate and compliant legacy pension conversions.
• Seamless Integration with Simple Fund 360: Manage pension changes with accurate reporting and automation tools that streamline SMSF administration.
• Comprehensive Data and Record Management: Maintain accuracy and security with BGL SmartDocs AI-powered document processing.
• Automated Pension Commutations: Reduce manual calculations and administrative workload with built-in automation.
• ATO Compliance and Real-Time Reporting: Ensure regulatory compliance with instant reporting and integrated legislative updates.
• Expert Support and Training: To navigate the transition confidently, access BGL’s extensive resources, including webinars and expert support.

To support SMSF professionals in understanding these changes, BGL and Smarter SMSF will host a free webinar on 29 April 2025. This session will cover:

• The impact of the new legacy pension conversion regulations.
• Key considerations for commutations and reserve allocations.
• Practical guidance on handling conversions within Simple Fund 360.
• Steps required to document commutations in compliance with the new regulations and fund governing rules.

For more information and to register for the webinar, please click here.