Testimonials


I had no idea where my lost super was or the names of the funds. I just new it was scattered everywhere and I should definitely have more than $3,000 in my super. Australian Super Finder found all 7 of my funds and now my balance is almost $50,000. Thank you so much for getting my super back on track. ? Leonie, Thomastown VIC


Super Facts and Tips

When Is It Okay To Underpay Minimum Pension Payment?

As said by the Australian Tax Office, if the standards for minimum pension payment haven't been met, namely, total settlements to a super fund member in a financial year (June - July) are below the yearly minimum payment amount, the fund member won't be able to acquire ECPI unless the member satisfies the following conditions:

• Unable to settle the minimum pension payment is as a result of an honest mistake, and entails a slight underpayment. (The Australian Tax Office considers a small underpayment to be the one that doesn't exceed 1/12 of the minimum amount in the applicable financial year.)
• Or failure to settle the minimum pension payment is as a result of matters beyond the trustee's control.
• In addition to the underpayment (as a result of small underpayment and honest mistake or outside the trustee's control), the pension complied with the superannuation rules.
• When trustee knew about the underpayment, he/she makes a catch-up settlement as soon as possible (within four weeks of discerning the underpayment).
• If the catch-up fee had been settled in the preceding (and exact) year, the pension complied with the superannuation rules, namely, aside from the slight underpayment, all other super rules were followed.
• The catch-up fee is treated as though it was settled in the correct year (and doesn't count toward the pension fee for the later year wherein it's made).

If the Trustee Meets the Conditions Mentioned

If the trustee meets the conditions mentioned above, then the current super pension is considered to continue to run, meaning the trustee can keep on claiming the tax exception on earnings for pension asset, and the pension account's tax-free and taxable components do not have to be recomputed. Moreover, any payments throughout the budget year wherein the rules for minimum pension payment weren't met, are still deemed pension payments instead of lump sum payments.

The distinct conditions above also relate to account-based pensions that run as transition-to-retirement, concerning the minimum pension amount's underpayment, instead of maximum pension amount's overpayment.

More information about SMSF are available on our site at www.australiansuperfinder.com.au

All information on this website is of a general nature only. We have not taken into account your financial situation, needs or objectives. You need to make up your own mind and ascertain yourself if it is right for you. We recommend you read the product disclosure statement(s) and the financial services guide before making any financial decision.

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