Despite the tougher consequences of minimum SMSF pension shortfalls, the ATO’s 1/12 exception still matters and remains a critical compliance safety valve for SMSF professionals.

The consequences of underpaying a pension in the 2025 financial year just got a whole lot tougher. TR 2013/5 was updated in June 2024, introducing a new approach to processing underpaid pensions, requiring SMSF trustees and professionals to understand these changes thoroughly. The One-Twelfth Rule Still Applies Before delving into the changes affecting underpaid pensions, it is essential to clarify that the one-twelfth rule remains in effect. The rule provides limited c