Cases of Underpaying Minimum Pension Amount
Here are other common examples of underpayment of minimum pension amount that you need to be aware of.
Trustee Did Late or Incorrect Minimum Pension Payments
The trustee must actively obtain a GPA concession, considering that there is no option to self-assess the concession. The ATO must consider specific situations of the case to determine whether or not to work out the GPA concession once again.
Trustee Does Payment through Dishonoured Cheque
A cheque that is dishonoured can be controlled by the trustee, as it is with the ATO holds the view that trustees must run the super fund in such a way that it ensures that adequate funds remain in the superannuation fund's bank account. Trustees cannot do self-assessment, and should the trustee apply with the ATO, the later will inhibit the GPA concession.
Result: The superannuation pension will be expected to have ceased at the beginning of the income year for income tax purposes.
The ATO stated that if the trustee can demonstrate all affordable steps were required to guarantee that pension payments are processed before 30 June, and it was something outside the trustee's control that avoided payments from being made, the ATO may think about working out the GPA concession.
Keep in mind: The ATO has shown that if a trustee composes a cheque for the payment on 30 June, and provided the cheque to the member on 30 June, but the funds were not readily available in the super account on that time, the minimum paying requirements wouldn't be pleased. This ATO method applies even if the cheque exists at a much later time, and honoured. The ATO states that the absence of offered funds on 30 June means that the payment is made in another year instead of 30 June.
Trustee Records Payment Does Not Pay the Pension Payment
The superannuation pension will be considered to have stopped at the beginning of the year, and it is not possible to have self-assessment, and the ATO does not allow space concession.
You can best learn about minimum pension amounts by reading the articles we have written about it on our site. Visit us at www.australiansuperfinder.com.au or call us at 1300 252 167
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