Q: I am drawing on an account-based pension from my SMSF. I turn 65 on 30 June 2018. Will I need to draw a minimum of 4% or 5% for the 2017/2018 year, and does the minimum pension factors change for the 2018/2019 year? Or, in other words, what is the determining age, the one at the start of the taxation year, or the ... Read more
SMSF pension: How do I calculate my minimum pension payment?
Q: I run our SMSF. I wish to retire at 59. I am a little confused about the 4% minimum rule for pensions. Do I have to withdraw 4% of my total accumulation SMSF fund, or do I move some of the assets into a pension fund and then draw 4% a year? A: You ask a very popular question. The minimum pension payment is based ... Read more
Retirement and tax: What are the minimum pension payment rules?
Q: I am 63. I want to retire next year but I am not sure if I want to access my super benefits yet. I have heard that when I retire, I must withdraw some super benefits each year, otherwise I won’t receive tax-free super benefits. Can you please clarify the rules for me? A: Your question is really four questions in ... Read more
Over-65s work test: How does it operate?
2018 Federal Budget alert! From 1 July 2019, the federal government will introduce an exemption from the over-65s work test for Australians aged 65 to 74 with superannuation balances of less than $300,000, for the first year they don’t meet work test requirement. The full $25,000 concessional cap (plus catch-up ... Read more
I’m under 60. Does my super payout also affect my other income, and tax bill?
Q: I have tried to phone the ATO re this query. Could you tell me the answer to this question? I turn 58 soon and I am eligible for a super payout of $201,000 next month of which only the $1000 is taxable at 17.0%. However, I still intend to keep working at my $58,000 a year job and wondered how this will affect the ... Read more
Unrestricted access to super, sometimes
Q: I have been a member of my super fund from about 1993. I see from your 14 legal ways to withdraw your super benefits article, that I may be able to access my restricted benefit. You write: “If you’ve been a member of a super fund since before 1 July 1999, you can cash your ‘restricted non-preserved benefit’ (certain ... Read more
Super benefit payments: What is the proportioning rule?
Q: I have come across a statement which refers to a proportioning rule. Could you please explain to me exactly what the proportioning rule is, who it applies to and when it applies? Also, if you have a SMSF, how do you do the calculations? The proportioning rule applies to superannuation lump sum benefit payments, ... Read more
Divorce: How is Australian superannuation divided in a NZ divorce?
Q: Are you able to shed any light on how Australian super funds are treated/divided by New Zealand courts in the case of divorce, where the two parties are also New Zealand citizens? We’re not familiar with NZ family law but what I can say is that whatever a NZ court determines in relation to splitting Australian ... Read more
Reaching preservation age: Taking super, tax and timing
Q: If at 55, I take up to $200,000 out of my super as a lump sum tax free, when I turn 60 will I be able to draw down as a lump sum the rest of my superannuation without having to pay tax as well? A: Before we answer the main part of your question, we need to clarify the assumption you make about when a person can ... Read more
Accessing super early: Permanent departure from Australia (6 Q&As)
This article contains 6 examples of popular questions received by SuperGuide from Australian citizens and Australian permanent residents departing Australia, and overseas workers, who are seeking to withdraw super benefits before retirement. If you’re a temporary resident of Australia then check out another SuperGuide ... Read more
Can we run our business overseas if we are ‘retired’?
Q: We are Australians living and working on a South Pacific island and age-wise we are eligible to access our super later this year. We have retired from Australia and have no intention of working in Australia again, but does it affect our “retired” status for superannuation if we are running our own business overseas ... Read more
Superannuation Guarantee: Do we have to pay SG for overseas workers?
Q: We have a girl working for us who is on a UK working visa. She doesn’t have super at home in England but do we have to pay her super while she is working for us? If yes, how do we go about it? Do we put it into a special super fund that she can then transfer over to her UK one, when she gets one? I am stuck!! Please ... Read more
