Superannuation minimum pension payment
SMSFs which are paying pensions have to meet the minimum pension payment requirements, or else both the super fund and the pension recipient can face higher taxes. Some pensions also have to satisfy a maximum pension payment requirement.
Despite recent comments by other senior members of the Government, changes may still be made to the minimum superannuation pension drawdown amounts, according to the Assistant Treasurer Josh Frydenberg. The Government will also take superannuation changes resulting from the Tax White Paper process to the next election,
Update: Assistant Treasurer Josh Frydenberg now says the Government is considering changing the superannuation drawdown rules, without increasing the rates.
Despite promising to review the appropriateness of the minimum superannuation pension drawdowns, the government appears to now be abandoning any changes.
The Australian Financial Review is reporting that Social Services Minister Scott Morrison said the government has no intention of making any changes to pension drawdowns.
ATO Assistant Commissioner for superannuation, Matthew Bambrick, told the Tax Institute Annual Superannuation Intensive Conference that the ATO is “concerned that some organisations are promoting arrangements where SMSF assets provide members with a current-day benefit.”