SMSF Services
Pension Setup & Compliance
Commencing a pension from your SMSF is one of the most tax-effective strategies available — but it requires correct documentation, minimum pension calculations, and ongoing compliance with strict SIS Act requirements. PHC & Associates manages the complete pension commencement and annual compliance process for SMSF members.
1000+
Clients Served
CPA
Certified
Pension Phase
Specialists
What's Included
Everything Covered in This Service
Account-based pension (ABP) commencement documentation
Pension commencement notice and trustee resolution
Minimum annual pension calculation — based on age and 1 July balance
Pension payment verification — ensuring minimum is met each year
Transfer balance account report (TBAR) lodgement with ATO
Segregated vs proportionate method advice for tax purposes
Transition to retirement income stream (TRIS) setup and compliance
Pension commutation and reset documentation
Why It Matters
Why This Matters for Your SMSF
Understanding the stakes helps trustees take their obligations seriously — and get the right support.
Pension Phase Earns Tax-Free Returns
Investment earnings on assets supporting a pension are completely exempt from income tax and capital gains tax — a significant benefit worth protecting through correct compliance.
Minimum Pensions Must Be Paid Every Year
If the minimum annual pension is not paid in full by 30 June, the pension is deemed to have ceased — and the fund loses its tax exemption on those pension assets for the entire year. This is one of the most costly and avoidable SMSF mistakes.
Pension Commencement Requires Correct Documentation
A pension cannot be commenced by simply transferring money — a formal commencement notice, trustee resolution, and pension agreement must be in place. Informal pension commencements are a common audit finding.
Transfer Balance Cap Limits Pension Phase Assets
The transfer balance cap ($1.9M) limits how much each member can transfer into pension phase. Exceeding the cap triggers excess transfer balance tax. Careful planning before commencement is essential.
TRIS and ABP Have Different Rules
A transition to retirement income stream (TRIS) has different tax treatment and withdrawal restrictions compared to a full account-based pension. Understanding the difference — and choosing correctly — depends on the member's age and circumstances.