Don't leave your obligations to pay a pension to the last minute, whilst it may only be April, now is a good time to ensure at least the minimum pension payment is made by your Self-Managed Superannuation Fund.

 If you have a pension account member in your fund you need to ensure one or more physical cash payments are made from your fund based on the following table. 

Age at 1 July 2014     Minimum % of account
 balance at 1 July 2014
Under 65  4%
65 – 74
 5%
75 – 79
 6%
80 – 84
 7%
85 – 89  9%
90 – 94  11%
95 and over  14%

If your minimum pension payment is not met, the ATO as the regulator, deems that the account has been reverted to accumulation for the entire year. This in turn means the income earned on the account will be taxable at the normal 15% rate rather than the pension rate of 0%!

Should you have questions about your pension requirements please do not hesitate to contact us. 

This article is a part of the Self-Managed Superannuation Client Update April 2015 - view in full here.