Benefit Payment Allocations

Our Benefit Payment Allocation documentation helps members provide instructions to the SMSF trustee as to how they would like pension withdrawals over the yearly pension minimum amounts to be allocated amongst their various accounts. The documentation is tailored to the member’s specific requirements and is drafted as a standing instruction until such time as it is revoked. 

A common strategy is to direct drawdowns in excess of the minimum amounts to accumulation or pension interests with the highest taxable percentage. Options are also provided to nominate the withdrawals as lump sum payments, pension payments or pension commutations with subsequent lump sum withdrawals.  The latter may assist in creating room under the member’s transfer balance cap with a view of making future contributions and potentially commencing a new pension up to the members transfer balance cap. The reduction of taxable components may be of particular value if the superannuation interests are to be paid to non-tax dependents in the event of the member’s passing. 

Feel free to contact our office at 1800 799 666 if you wish to discuss prior to ordering. 

The documentation is prepared on the basis that the member has engaged with their financial planner to determine allocations that best suit their needs or has sufficient understanding of the applicable taxation, superannuation and estate planning implications of their instructions to make an informed decision prior to providing instructions.  Our service is for the documentation of the member’s decision in relation to allocating withdrawals from the fund, and we are not engaged to advise as to the right strategy for the member’s particular circumstance.  The documentation provided is aimed at ensuring that clear instructions are provided by the member and that the trustee maintains adequate records in support of administering the members superannuation interest held within the fund.

  • Member request to trustee on how withdrawals should be allocated
  • Trustee acknowledgement of the member request being received
  • Trustee minutes in relation to request