When failure to meet minimum pension standards comes at a cost

Written by Emma Partenza, SMSF Works, SMSF Specialist Advisor (SSA) May 2020 Overview The primary tax concession for an SMSF that pays a retirement phase pension is the partial or potentially full exemption from fund income tax (15%) on eligible assessable income. However, this is put at risk where the minimum pension standards are not…

Are you across the superannuation death benefit limitations?

November 2019 As an SMSF trustee, you need to take special care when paying death benefits as you are responsible for ensuring that the payment rules are met. Strict rules apply, affecting who can receive a death benefit, the form in which the death benefit can be paid and the timing of such a payment.…

Starting a pension from your SMSF?

July 2018 The background Superannuation – and your SMSF – is your nestegg for retirement. When you are nearing retirement and looking to reap the rewards of your hard-earned savings it’s your super that you’ll call upon to fund your lifestyle. But to do this, your super has to do two things: Your capital needs…

What changes with your SMSF as you move into retirement?

July 2018 Bryan Ashenden is the Head of Financial Literacy and Advocacy at BT Financial Group. First appeared in Switzer Daily, 8 July 2018 Retirement is a big decision. Your existing work/life pattern changes. Your income source, and often income level changes. You may actually have more time on your hands to do what you…

New pension management strategies post 1 July 2017

September 2017 Overview This Insight Paper summarises the impact of the introduction of the transfer balance cap regime on SMSF pension strategies from 1 July 2017. In particular, a distinction is drawn between segregation of assets to calculate exempt current pension income for taxation purposes and segregation of assets undertaken by SMSF members for other…

Transition to retirement pensions – back to their true purpose

March 2017 The changes to superannuation announced in the 2016 Federal Budget have been passed by Parliament. Amongst the changes was legislation which will remove tax concessions for transition to retirement pensions (TTRs) and bring them closer to their purpose of providing income to members as they transition to retirement. Transition to retirement pensions (TTRs) make…

The $1.6 million transfer balance cap – what does it mean for you?

January 2017 The changes to superannuation announced in the 2016 Federal Budget have been passed by Parliament.  Amongst those changes was the introduction of a $1.6 million transfer balance cap which limits the total amount that can be transferred into the tax-free retirement phase. This new limit on superannuation will apply from 1 July 2017…

SMSF Income Streams

January 2017 There are a number of types of income streams which can be paid from superannuation funds or with superannuation benefits. However, even though some, such as term allocated pensions and defined benefit income streams such as lifetime and term certain pensions are generally no longer allowed to be commenced within an SMSF, there…

Cashflow management in retirement

October 2016 So, the big question is: how much money is enough for your retirement? Clearly, the one constant for every Australian in retirement is meeting basic living costs. Lifestyle is a very personal thing —luxury living for one person is a modest existence for someone else. Consider your own circumstances and your SMSF. Will…

Cash flow management in retirement – have you got it right?

October 2016 For those nearing retirement, it can be an exciting time or a rather difficult one. Exciting if you are confident that you have saved enough to comfortably fund your retirement; difficult if you are not so sure. There are two sides to this often asked question of have I got it right and…