SuperGuide

Superannuation and retirement planning information

What happens if I don’t pay the minimum pension from my SMSF?

What happens if I don’t pay the minimum pension from my SMSF?

There are significant tax benefits when an SMSF member is in retirement phase, otherwise known as pension phase. Fund earnings on assets that are used to meet the required pension payments are tax free, so too are any capital gains that are realised in retirement phase.

That’s why it is essential that all the required pension standards are met each and every year.

Failing to meet these pension standards will in most cases create unwanted tax and compliance outcomes for the SMSF and the fund’s trustees.

Read more about SMSF pensions.

Pensions must exist in both form and effect

About the author

Garth McNally

Garth has worked in the Australian Superannuation industry for over 20 years with a specific focus on self-managed super funds. He provides ongoing support and training to individuals as well as to professionals working in the superannuation area, including advisers, accountants and lawyers. He is a regular contributor to industry publications and to the leading professional bodies including Chartered Accountants Australia & New Zealand (CA ANZ).

Learn more about SMSF pensions in the following guides:

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SMSF pensions SMSFs

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