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Payments above ABP minimum - reasons to prospectively document a strategy ASAP

Publication date: 10 Nov 17 | Source: AUSTRALIAN TAX WEEK

Issue: Issue 44, 3 Nov 2017

Pages: pp 1-3

Abstract:

Payments above the account-based pension (ABP) minimum annual payment have the potential to become a trap. The June 2017 SMSF Benchmark Report by Class Super states that “the average SMSF pensioner withdraws about $74,000 annually on their pension over a series of 12 transactions and overdraws $24,000 above their minimum”. This means that the average pensioner is withdrawing more than 32% above their relevant ABP minimum and could miss out on significant opportunities unless timely action is undertaken! This article summarises the trap and examines the main reasons to prospectively document a strategy as soon as possible.

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Author profiles

Joseph Cheung
Joseph is a Lawyer with DBA Lawyers. - Current at 14 March 2018
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Bryce Figot CTA
Bryce is a Director at leading SMSF law firm DBA Lawyers. He practices predominantly in taxation and superannuation law, particularly the law of SMSFs. He is regularly quoted and published in the Australian Financial Review, the Herald Sun, CCH and LexisNexis publications, and elsewhere in the financial press. He presents extensively to accountants, financial planners and lawyers Australia-wide. Bryce has worked with DBA Lawyers since 2003. He holds both a bachelor degree and a masters degree in law and is an accredited Specialist SMSF Advisor. - Current at 10 December 2015
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