People receiving pensions via self-managed superannuation funds (SMSFs) have been reminded of their obligations as they move up to the close of the financial year.
Cavendish Superannuation head of education David Busoli said SMSF recipients had to ensure that at least the minimum pension had been paid in the financial year.
He said if this was not the case, the member would not be regarded as having been in receipt of a pension but, rather, be deemed to have received lump sum draw-downs instead.
Busoli said that being deemed to have received lump sum draw-downs could create both tax and preservation issues.
He said an SMSF could provide the pensioner with a cheque to make up for any shortfall on 30 June even if the cheque was not banked for a few days into the new financial year.
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