On 1 January, 2015, the income test assessment of account-based pensions changed for income support payments and also for the Commonwealth Seniors Health Card (CSHC).

Account-based pensions commenced on or after 1 January, 2015 are deemed for income test purposes for both, income support payments and CSHC assessment. Account-based pensions established prior to 1 January, 2015 may be grandfathered if certain requirements are met.

For income support payments, account-based pensions are classed as grandfathered if all of the following requirements are met:

Self-managed super fund (SMSF) trustees are ultimately required to take on many responsibilities. From being the decision point for all fund actions, to managing the fund prudently for the benefit of all fund members – all while being aware that they, as members, will not have access to any special compensation schemes or access to the Australian Financial Complaints Authority (AFCA) if something goes wrong. It’s a lot to take on, and a financial adviser can help trustees understand how both superannuation and tax law may apply in their circumstances.