Tax Ruling TR 2013/5 was issued on 31 July 2013 and it applies retrospectively from 01/07/2007. The key point in this ruling is as follows:
If the paying fund fails to meet the minimum annual payment, then for income tax purposes, the income stream is taken to have ceased at the beginning of the relevant financial year. This means that the paying fund will loose its tax exempt status.
Other less crucial points are:
The commencement date for an income stream or pension is governed by the governing rules of the superannuation fund.
The income stream or pension cannot commence until all money have been received.
If the balance of the pension account is below zero, then the income stream is taken to have stopped.
If a member in receipt of the income stream dies, and the governing rules of the fund allow for the automatic continuation of the income stream to be paid to their dependent spouse, then there is no cessation of the superannuation income stream.