Note: SMSF record-keeping checklists appear at the end of this article.Although record-keeping and reporting may not seem like the main game when running a self-managed super fund, recording and reporting on trustee decisions, investment transactions and member contributions is fundamental to the proper operation ... Read more
SMSF pensions
A member of an SMSF can choose from only two types of pensions – an account-based pension or a transition-to-retirement pension (what we call a ‘TRIP’). (If you retired before 20 September 2007 however, you may be receiving another type of pension from your SMSF.)
An account-based pension gives you unlimited access to your account balance but how long your money lasts depends on the investment returns that your pension assets deliver, and the amount you withdraw each year. You also must withdraw a minimum amount each year, based on your age. You must follow special rules when running a SMSF pension, including minimum pension payments and reporting exempt current pension income (see SuperGuide section Retirement phase (formerly called Pension phase)) .
If you plan to run an accumulation account and a pension account within your SMSF, then you need to segregate the assets supporting the SMSF pension, or obtain an actuarial certificate.
Note: You can also arrange for your account-based pension to be paid as a reversionary pension to your spouse after you die.
For more detailed information on SMSF pensions, see the following SuperGuide links:
- Retirement phase (formerly pension phase)
- Superannuation payment options
- Starting an SMSF pension
- Minimum super pension payments
- Transition-to-retirement pensions
- $1.6 million transfer balance cap
- Actuarial certificates
For more information on SMSF pensions see the following SuperGuide articles:
Set out below are all SuperGuide articles referring to SMSF pensions.
SMSF compliance for super beginners
Your responsibilities as a self-managed super fund (SMSF) trustee are directly linked to superannuation law, tax law, corporations law or trust law. Generally, SMSF trustees must consider at least 9 super compliance must-dos.If you run an SMSF, you must follow the super laws and tax laws in particular, or risk ... Read more
SMSFs: Driving your super C-A-R-T obligations
If you run an SMSF (or you’re considering running an SMSF), a helpful way to understand your responsibilities as an SMSF trustee, is to consider that operating an SMSF is all about steering your own super CART.CART is a term that I have coined to help SMSF trustees manage the mandatory aspects of running an SMSF, ... Read more
Super loophole still benefits politicians and senior public servants
Amid the confusion surrounding the $1.6 million transfer balance cap on super pensions, and the short timeframes available to comply with this change (which took effect from July 2017), a small but important loophole was missed by the super experts, and continues to be ignored by the superannuation lobby groups, and ... Read more
Age Pension: 300,000 Australians lost entitlements on 1 January 2017
Note: In this article you can learn about the radical change to the Age Pension assets test thresholds, which took effect on 1 January 2017. For disturbing analysis of how these changes affect middle Australia, see our Retirementgate series (Retirementgate: Government’s Age Pension debacle hits middle Australia), and ... Read more
Less Age Pension, and paid to fewer Australians since January 2017
The January 2017 changes to the Age Pension assets test is a bad example of ‘back to the future’ it seems, with a harsher Age Pension asset test in place since 1 January 2017. The federal government allowed roughly 330,000 retired Australians to lose some, or all, Age Pension entitlements overnight (on 1 January ... Read more
Anti-detriment payments banned since July 2017
On 3 May 2016 (2016 Federal Budget), the Coalition government announced that it would abolish the anti-detriment provisions from July 2017, and this change became law on 29 November 2016.Since 1 July 2017, a super fund cannot pay a refund of a member’s lifetime superannuation contributions tax payments into a ... Read more
Income test changes (January 2015) mean less Age Pension forever
Change to the deeming rules 3 years ago, that extended deeming rules to superannuation pensions, can potentially have financially devastating effects on the Age Pension entitlements of current and future retirees. Although the government’s Age Pension assets test changes (which took effect from 1 January 2017) are ... Read more
Superannuation death benefits and the $1.6 million transfer balance cap
We have received many questions from readers about how the new $1.6 million transfer balance cap will operate when a fund member dies, especially if the fund member has arranged for his or her spouse to receive a superannuation death benefit pension, including a reversionary pension. This article provides a brief ... Read more
Defined benefit pensions and the $1.6 million transfer balance cap
Every Australian entering retirement phase with superannuation benefits, now needs to monitor his or her very own retirement cap. Since 1 July 2017, the $1.6 million transfer balance cap represents the maximum amount that you can transfer to retirement phase to support a super pension. The transfer balance cap will be ... Read more
CGT relief and the $1.6 million transfer balance cap, and TRIPs
If you had more than $1.6 million of superannuation in retirement phase as at 1 July 2017, or you have, or in the process of reverting a transition-to-retirement pension back to accumulation phase then you should have already started considering your future tax circumstance, and making some serious decisions.Anyone ... Read more
Retirement phase: A super guide to the $1.6 million transfer balance cap
Since 1 July 2017, a cap of $1.6 million has been imposed on every Australian, limiting the amount of super that can be transferred into retirement phase (what we previously called pension phase).For Australians in retirement phase (pension phase) before July 2017 and who had have more than $1.6 million in super ... Read more
