The SuperGuide Annual Minimum Pension Payment Calculator works out an individual’s minimum pension payment amount, based on the individual’s age and account balance as at 1 July for the financial year. You can try out the calculator below. Note: If you’re looking for a calculator that estimates Age Pension payments, ... Read more
Guest contributor: Annual SMSF audits critical to sustainable SMSF sector
Note: Each year, every SMSF must appoint an approved SMSF auditor (registered by ASIC) to conduct a financial and compliance audit of the SMSF. In the May 2018 Federal Budget, taking effect from 1 July 2019, the federal government announced the replacement of the annual SMSF audit, with an SMSF audit every three years ... Read more
Tax-deductible super contributions: Timing start of pension is essential
Q: I put money into my SMSF in June 2017 from a capital gain. I wasn’t able to tell the fund at that time what it was because my accountant hadn’t completed the figures so that notice was sent to them in August 2017. As I understood the rules, so long as the money was in the fund at June 2017, I could then withdraw any ... Read more
Transition-to-retirement pension (case studies): How does a TRIP work?
Important! Since 1 July 2017, the tax exemption on fund earnings financing a transition-to-retirement pension (TRIP) has been removed. The super laws no longer consider a TRIP to be a superannuation income stream in retirement phase. This change applies to TRIPs in place before July 2017 as well as TRIPs commenced on ... Read more
SMSF pension payments: A little bit under may be OK
SuperGuide often receives questions from readers asking what happens if they don’t withdraw the minimum pension amount required to be paid each year from their super pension account, especially when the underpayment is due to an honest mistake, or due to circumstances beyond their control. Before January 2013, the ... Read more
Less tax, more super? A transition-to-retirement pension is no longer the answer
Important! Since 1 July 2017, the fund earnings on assets financing a transition-to-retirement pension (TRIP) are no longer exempt from earnings tax. Since 1 July 2017, a TRIP is no longer considered to be in retirement phase. On 3 May 2016, in the 2016 Federal Budget, the Coalition (Liberal/Nationals) government ... Read more
Minimum pension payment: At what date do you determine the age for payment calculation?
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
SMSF pension: Stick with original tax-free and taxable components
Q: My wife and I have only recently established a SMSF and are on a steep learning curve. We are in the retirement phase. Both of us have a large tax-free component and a smaller taxable component (this has been minimised already). Could you please tell me whether the pension fund earnings are tax free, taxable or are ... 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
SMSF residency: SMSFs must call Australia home
‘When I retire, I am going to travel…’ is a common phrase when Australians dream about life after work. For many Australian retirees, overseas travel features prominently in their retirement plans. If you’re an SMSF trustee however, and you intend to travel for extended periods, or even live outside Australia for a ... Read more
