Is your SMSF meeting its PAYG obligations?
The ATO has called on self-managed funds to check whether they are meeting new pay-as-you-go (PAYG) withholding obligations for capped defined benefit income streams paid to their members.
SMSFs have PAYG obligations to withhold tax from income streams that have been paid to their members in circumstances where:
- The member is 60 years or older.
- The member is under 60 years and has a death benefit capped defined income stream (where the deceased was 60 years or over when they died).
If you have no tax that you need to withhold from a member’s super, then you are required to provide the individual with a pension payment summary and lodge a PAYG withholding summary with the ATO. This should be done by 14 August, following the end of the financial year that the payment was made.
