• A member needs to make a written request to the trustee to start an income stream including some details on what they require and if the pension is to be reversionary to their spouse or partner.

• The member receiving the income stream payment must have met a condition of release, for example turning 65. More details here

• The type of income stream being paid must be allowed under the law and your fund’s trust deed. Always check your Deed, it’s the instruction manual for your fund

• The Trustees of the fund should acknowledge the request and minute the decision to allow the pension based on a condition of release and provide the member with a Pension Agreement and Product disclosure Statement. (this can often be all processed as part of a Pension Kit so just ask your adviser or administrator)

• You need to value fund assets when the income stream starts and on one July each year you continue to make payments.

• Make sure the minimum income stream payment is paid to the member each year.

• You may have to withhold tax from some income stream payments for members aged 55-59. To do this, you’ll need to register for Pay As You Go withholding and complete some forms which you can get from the ATO website here.

• At the end of each tax year if more than one member has a share in the fund assets supporting the income stream — you will need an actuarial certificate to work out the tax implications for your fund which is organised by your accountant or administrator.

• Even if all members are receiving an income stream, you still have to meet all of your fund’s obligations including arranging the annual audit and lodging the SMSF annual return.

Remember — this is a big step for your fund so if you need help you should contact an SMSF professional to help you get it right!