If you are currently receiving a pension from your superannuation fund or SMSF, please note the Government has introduced a temporary reduction of the minimum drawdown requirements by 50% for the 2019/20 and 2020/21 financial years.

We understand it is a really tough time for a lot of people at present, with adversity resulting from the Coronavirus. For members who wish to take up this opportunity to retain more of their capital in their superannuation fund rather than receiving the pension payment, please give us a call as soon as possible and we can help you with this change. However, we note there’s no changes to members current/existing superannuation pension arrangements. The reduction is OPTIONAL only.

The reduction that can apply for the 2019/20 and 2020/21 income years are:

  
    Age
    Default Minimum
Drawdown Rate (%)
    Reduced Drawdown Rate
by 50% per cent (%)
  

    Under 65
    4.0%
    2.0%
  

    65-74
    5.0%
    2.5%
  

    75-79
    6.0%
    3.0%
  

    80-84
    7.0%
    3.5%
  

    85-89
    9.0%
    4.5%
  

    90-94
    11.0%
    5.5%
  

    95 or more
    14.0%
    7.0%
  

If you have any questions, please don't hesitate to contact any one of our advisers below and they will be happy to assist:

Matthew Lane	matthew@wealthfundamentals.com.au	07 3720 1299
Chris Lane	chris@wealthfundamentals.com.au	07 3720 1299
Alec Winter	alec@wealthfundamentals.com.au	07 3720 1299

Lane Moses Pty Ltd ABN 56 092 186 117 trading as Wealth Fundamentals and its advisers are Authorised Representatives of Fortnum Private Wealth Ltd ABN 54 139 889 535 AFSL 357306.

The information (including taxation) contained within this document does not consider your personal circumstances and is of a general nature only - unless otherwise stated. Wealth Fundamentals strongly suggests that you should not act on it without first obtaining professional advice specific to your circumstances.

This information is based on our understanding of legislation at the time of writing. Such legislation may be subject to change. This publication cannot be reproduced in any form without the express written consent of the author.