Calculate the amount for each pension

For a pension running for the full year, the standard minimum percentages include 4% for someone under 65 and 5% for someone aged 65–74. Older age bands have higher percentages. Use the member’s age at 1 July and the relevant pension account balance.

For example, a member aged 68 on 1 July with an $800,000 pension account has a $40,000 annual minimum at 5%. That example assumes the pension runs for the whole year. Do not apply it unchanged to a pension that starts or ends partway through the year.

Check cash availability as well as investment value

Map scheduled pension payments against cash in the fund and expected receipts. Allow for property expenses, tax, administration and other fund costs. A delayed rent payment can matter even where the fund’s overall asset value looks healthy.

For trustees, running an SMSF includes keeping payment records and meeting the fund’s obligations. Review how each withdrawal has been recorded rather than assuming every transfer counts towards a pension minimum.

Reconcile well before the last week of June

Compare payments actually made with the required minimum for each pension. Confirm recipient details and allow time for bank processing. Document the calculation and keep statements showing the payments.

If you discover a shortfall after year end, get advice promptly. It can affect the pension’s tax treatment, and a later transfer does not automatically fix the earlier year. Decisions about selling investments to fund payments should be considered with your licensed adviser.