---
title: "SMSF trustee minutes and member request: partial or full commutation of a pension to a lump sum"
url: "https://ailawframework.com/precedents/superannuation/smsf-minutes-pension-commutation"
type: "precedent"
site: "AI Law Framework"
id: "a27-smsf-minutes-pension-commutation"
area_id: "A27"
kind: "form"
ai_level: "yellow"
version: 1
task_ids: ["A27-A20260923-3"]
law_stated_as_at: "2026-10-18"
---

# SMSF trustee minutes and member request: partial or full commutation of a pension to a lump sum

> A member's commutation request and the trustee's minutes for a partial or full commutation of an SMSF pension: documenting the request when made, the minimum payment check, the lump sum amount and components, and the…

Canonical page: https://ailawframework.com/precedents/superannuation/smsf-minutes-pension-commutation  
Law stated as at: 2026-10-18

Site index for agents: https://ailawframework.com/llms.txt

A member's commutation request and the trustee's minutes for a partial or full commutation of an SMSF pension: documenting the request when made, the minimum payment check, the lump sum amount and components, and the TBAR reporting.

## Key facts

- Kind: Form. A form to complete, or a guide to completing an official one.
- Practice area: [Superannuation](https://ailawframework.com/precedents/superannuation.md)
- Jurisdictions: Australia
- AI level: Yellow. AI can help in set ways. A lawyer checks specific points before use.
- Law stated as at: 2026-10-18
- Status: Maintained. Checked on 2026-10-18 against the 2 authorities it cites, for Australia.

## When to use it

Use when an SMSF member in pension phase asks for a lump sum from their pension account (partial commutation) or to end the pension (full commutation), for example to fund a large expense, roll back to accumulation or restructure pensions. Document the request at the time it is made.

## Used for these tasks

- [Draft trustee minutes and a resolution from the meeting papers](https://ailawframework.com/practice/superannuation.md#A27-A20260923-3)

## How AI may be used

AI may complete the request and minutes from the member's request and the pension records and check the minimum payment position; the adviser or lawyer confirms the minimum has been or will be met, the tax components and the reporting before the trustees sign.

**AI may:**

- Fill the request and minutes from the member's written request, pension account balance and payment history
- Compare payments made this year with the minimum and show any shortfall
- List the TBAR event and the reporting due date for the commutation

**AI must not:**

- Must not backdate a request or minute, or treat a past pension payment as a commutation
- Must not decide the tax treatment of the lump sum for the member
- Must not approve a full commutation before the pro-rata minimum is paid, unless an exception has been confirmed

**The lawyer checks:**

- Request dated and signed before the payment, and the minutes record it at that time
- Minimum payment for the year met (full commutation) or the remaining assets are sufficient to pay it (partial commutation)
- Tax components follow the pension's proportions and the payment is permitted by the deed
- Commutation reported on a TBAR by the due date

## Authorities

- [Australian Taxation Office, Income stream (pension) rules and payments: commutations to be documented when requested and recorded in trustee minutes; minimum payment before full commutation; sufficient assets for the minimum before a partial commutation; partial commutations not counted towards the minimum from 1 July 2017; TBAR reporting](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/self-managed-super-funds-smsf/paying-smsf-benefits/income-stream-pension-rules-and-payments)
- [Australian Taxation Office, Transfer balance account (debits for commutations)](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/retirement-withdrawal-lump-sum-or-income-stream/transfer-balance-account)

## Full text and drafting notes

The full text and the drafting notes are not part of this public page. Signed-in firm accounts can read them at https://ailawframework.com/precedents/superannuation/smsf-minutes-pension-commutation and through the signed-in MCP connector https://ailawframework.com/mcp/firm.

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*