Updated: 29 March 2020
The Government is temporarily reducing superannuation minimum drawdown requirements for account-based pensions and similar products by 50 per cent for the 2019-20 and 2020-21 income years.
This measure will benefit retirees with account-based pensions and similar products by reducing the need to sell investment assets to fund minimum drawdown requirements.
The reduction applies to:
- account-based pensions (including transition to retirement income streams);
- allocated pensions (including transition to retirement pensions); and
- market linked pensions (also commonly called term allocated pensions).
The relief does not apply to lifetime or life expectancy pensions.
No need to apply, just reduce the amount of pension withdrawn according to the following table:
Note: If a pensioner has already drawn more than their reduced minimum they cannot return the surplus pension payments to the fund.
Those clients that do not need the funds and do not wish to sell assets in the current market to fund the withdrawal.
The Government is moving quickly and things are changing daily with regards to the response to COVID-19.
Should you have any queries regarding this measure or any Government measure announced in relation to COVID-19, please contact our office for more information.
If you would like to print this information, please click here for our PDF format.
The information provided in this information sheet does not constitute advice. The information is of a general nature only and does not take into account your individual situation. It should not be used, relied upon, or treated as a substitute for specific professional advice. We recommend that you contact Brentnalls SA before making any decision to discuss your particular requirements or circumstances.