If you are receiving an account-based pension, or transition to retirement income stream (TRIS), you need to make sure the super laws are complied with. The fund needs to pay at least the minimum pension and if the pension is a TRIS, no more than the maximum permitted can be paid.
If the pension does not comply with the pension rules, it is taken to have ceased at the beginning of the financial year for tax purposes. From the start of the income year when the pension rules are not met, any payments you receive are treated as a series of lump sums. In addition, any income earned on investments in the super fund used to support your pension in that tax year will be taxed in the fund at 15%.