Reminder to pay pensions before 30 June
The end of financial year always seems to come up faster than it should. When it comes to self managed superannuation it is important that certain matters, if applicable to your circumstance, are considered prior to 30 June.
If your superannuation fund is in pension phase or a Transition to Retirement Income Stream (TRIS) has commenced, it is crucial to ensure that the minimum pension payments for the 2014/2015 financial year are drawn prior to 30 June 2015.
If a fund fails to physically pay sufficient pension payments to meet its minimum pension obligations, the fund will not be entitled to the tax exemption (i.e. it will lose its tax free income status). Other than in specific circumstances, it is not acceptable for the fund to accrue any pension shortfall in its financial statements.
Your minimum pension amount was provided on your SMSF year end letter from Bush & Campbell. If you require additional detail on your minimum pension amount please contact Daniel Uden on (02) 6938 4600.