Minimum Pensions to Increase for New Financial Year

In response to COVID-19, the Federal government temporarily reduced superannuation minimum drawdown requirements for account-based pensions and similar products by 50% for 2019–20, 2020–21, 2021–22 and 2022–23 financial years.

For the 2023–24 financial year, the 50% reduction in the minimum pension drawdown rate will no longer apply.

This means that on 1 July 2023 when you calculate the minimum annual payment on your pension balance, the 50% reduction will not apply to the calculated minimum annual payment.

Summarised below the minimum percentage required to be taken dependant upon age is as follows:          

Age                                                   Minimum percentage

Under 65                                                       4%

65-74                                                              5%

75-79                                                              6%

80-84                                                              7%

85-89                                                              9%

90-94                                                              11%

95+                                                                 14%

If you are currently drawing a pension from your superannuation account you should ensure that you the amount withdrawn is sufficient to comply with these changes.  Should you require any further assistance concerning these changes please contact us on (07) 3910 5675 or [email protected].

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