Temporary Reduction in Superannuation Minimum Pension

You may have heard that as part of the economic response to the Coronavirus, the Government is reducing super minimum pension drawdown requirements by 50% for account based pensions, for both of the years 2019/20 and 2020/21. This may reduce the need to sell assets to fund minimum pensions. The temporary reduction does not apply to complying lifetime pensions.

This means that your minimum account-based pension(s) to be drawn by 30 June 2020 will be halved. We will be in touch with you after Easter, when we start tax planning with you, and advise you what the new minimums will be.  Meanwhile, may we suggest that you don’t draw down any further pension, unless of course, you need the money.

Please be aware that if you have already drawn more than the revised minimum amount, there are limits on the extent to which you can return the excess to your super fund. Whether or not you could do so would depend on your continued ability to make concessional and / or non-concessional contributions.  

We have attached The Government fact sheet for your information.

Please don’t hesitate to contact us if you have any questions or you require any further information. 

Disclaimer: The information in this newsletter is provided for informational purposes only and should not be relied upon as specific advice. Warnocks Pty Ltd does not accept any liability in respect of this information.