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Ensure Minimum Annual Payments for Super Income Streams by June 30
Important ATO Update: Ensure Minimum Annual Payments for Super Income Streams by June 30
Published: June 4, 2024
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The Australian Taxation Office (ATO) has issued an important reminder for all self-managed super fund (SMSF) trustees: Ensure that minimum annual payments from your pension accounts are made by June 30. This crucial step helps avoid potential tax consequences.
Key Details:
Requirement: An SMSF must pay a minimum amount each year to any member receiving a pension that commenced on or after September 20, 2007. These pensions are primarily account-based.
Deadline: Minimum pension payments must be made by June 30, 2024.
Calculation: The minimum payment is calculated by applying the relevant percentage factor based on the member's age to the member's pension account balance as of July 1, 2023, or on a pro-rata basis if the pension commenced part way through the 2023-2024 financial year.
Failure to make the minimum payment by the June 30 deadline can lead to adverse taxation consequences for the member.
Action Steps:
Verify Payments: Ensure all members receiving an account-based pension are paid their minimum pension amount by June 30.
Learn More: For detailed instructions on calculating the minimum pension payment, visit the minimum pension standards.
Stay Informed:
For the latest news and updates about SMSFs, visit the ATO’s SMSF newsroom and subscribe to the monthly SMSF newsletter.
Don’t Get Caught Out: Make your minimum pension payments by June 30 to ensure compliance and avoid any negative tax implications. Stay proactive and informed to effectively manage your SMSF.
By adhering to these guidelines and deadlines, you can safeguard your financial future and ensure smooth management of your superannuation funds.