SMSF payment phase

For the year ended 30 June 2012, 65% of SMSFs reported they were solely in the accumulation phase, with the remaining 35% reporting they were making pension payments to some or all members and so were considered to be in the pension phase (see appendix 1, table 7).

Analysis of the five years to 2012 shows a shift of 9% of SMSFs from being solely in the accumulation phase into the pension phase.

Of SMSFs that pay a pension for the first time in each of the five years to 2012, there continued to be an increase in the proportion of funds that were in their first year of operation. While the proportion of these funds increased by 15%, the actual number of SMSFs remained at 2,200 in each year.

However of funds established in each year over the period, the trend showed a 2% decrease in the proportion of these funds paying a pension in their first year. 15

Of SMSFs starting pension payments in 2012, approximately 39% were over five years old, 40% were less than two years old (21% were operating in their first year). 16

Analysis shows that of funds established in the 10 years to 2012, 75% have not started making pension payments.

    Last modified: 16 Dec 2013QC 37999