The Government has temporarily reduced the superannuation minimum drawdown requirements for pension accounts by 50 per cent for the 2019/2020 and 2020/2021 income years. The temporary reduction is part of their Coronavirus economic response.
The reduced rates are as follows:
|Age||Default minimum drawdown rates (%)|
Reduced rates by 50 per cent for the 2019/2020 and 2020/2021 income years (%)
|95 or more|
Members who have paid themselves a pension of at least the Government’s temporary reduction minimum drawdown may:
- continue their pension payments according to their personal requirements; or
- stop paying themselves a pension for the remainder of the 2019/2020 financial year.
Members who have not yet paid themselves a pension for the 2019/2020 financial year, may use the Government’s temporary reduced minimum drawdown to satisfy their minimum pension requirements.
As an end of financial year tip, ensure the minimum pension amount is paid before 30 June 2020, also, if members want to make additional pension payments do so before 30 June 2020.
If you are unsure how this affects your pension contact Concise Super on 03 9838 3055.
This information is for general information only and does not constitute financial advice or take into account your personal needs, objectives and financial situation. Before making any decisions, we recommend you seek professional advice.