When establishing a pension, there is an error message stating the ETP Component Payment exceeds the ETP Component Balance.
This issue is caused by a Taxable - Untaxed Component under a member's accumulation account.
Generally, when money is rolled in from Government funds, tax will be taken out from the Taxable - Untaxed Component and this component will be updated to a Taxable - Taxed Component. An SMSF will not carry a component as untaxed for more than one year.
Refer to the ATO website Calculating components of a super benefit for more information on the Untaxed Element.
Scenario 1: First-year fund in Class
Navigate to Fund Level > Fund > Load Opening balances
- Click on Members tab
- Move the Taxable - Untaxed Component to the correct field
Scenario 2: Not a First-year fund in Class
Navigate to Fund Level > Members > Adjust Member Account Components
- Move the Untaxed Element to the correct field