The commissioner also confirmed through determination TD 2013/2 that where a commutation occurred from an account-based pension, that any withdraw, whether elected to be taxed as a lump sum, would count towards the member’s minimum pension obligations for the income year.

Mr Dunn said the commissioner “makes it clear” within TD 2014/1, released last week, that the previous determination (SMSFD 2013/2) does not apply to TRIS.

“The ruling confirms that a payment, made as a result of a partial commutation of an account-based pension that is a transition to retirement income stream, counts towards the minimum annual payment amount required during an income year (SISR 1.06(9A)), unless the payment is rolled over within the superannuation system on or after June 2009. Such payments that are rolled over prior to this date will count towards the minimum annual amount,” Mr Dunn said.

“A payment made as a result of a partial commutation of a TRIS does not count towards the maximum annual amount allowed to be paid from the pension account under subparagraph (b)(ii) of the transition to retirement income stream definition within SISR 6.01(2) where the payment was made on or after 16 February 2008. Such amounts before this date will count towards the maximum annual amount.

“It is important to distinguish here that a payment made as a result of a full commutation of a TRIS cannot count towards the minimum annual amount or the maximum annual amount as that pension ceases before the payment is made (refer to the commutation requirements contained within TR 2013/5).”