Minimum Pension Amounts
If you are a member of a self managed super fund (SMSF) and have a pension in place during the 2016 financial year, please ensure that the minimum pension that you are required to receive has been drawn out of super fund prior to 30 June 2016. Please note if making the payments by Electronic Funds Transfer that you need to allow time for the funds to clear the bank.
The consequences of failing to meet your minimum pension obligations before 30 June would be loss of tax exemption status for the pension account and any pension payments received during the year will be treated as super lump sums for both income tax and SIS Regulation purposes.
If Champion's prepares the annual compliance work for your SMSF, we would have notified you of your minimum pension amount for the 2016 financial year and will touch base with you as a reminder prior to 30 June 2016.
We suggest that any super contributions you plan to claim a tax deduction in the 2016 financial year are made well before Thursday 30 June 2016. Note that internet transfers of contributions are not considered paid until they reach the super fund's bank account.