Pensions (SMSF) – here’s what you need to know…
The fund assets that support pensions in your SMSF and the income earned from those assets, enjoy concessional tax treatment only while a member is receiving the pension or income stream!
Generally, when an SMSF pension ceases, for example, on the death of a member, the exemption of pension assets from capital gains tax also ceases, as does the deceased member’s pension exemption from income tax.
However, if the fund trust deed and other documentation provides for auto-reversionary pensions, then the payment of the pension may continue after death, to the surviving spouse!
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