In response to COVID-19, the Government has announced changes including reducing super pension drawdown rates, expanding early release of superannuation, and cutting age pension deeming rates. Some of these changes require legislation, which Parliament is sitting to consider today. Update: The Coronavirus Economic Response Package Omnibus Bill 2020 has passed… Read More »Super pension drawdown rates cut, early super release expanded, in response to COVID-19
Superannuation minimum pension payment
The SMSF Association has warned SMSFs with pensions to ensure that the minimum pension payments have been met by 30 June. SMSF Association CEO John Maroney said, given all the changes around 30 June, it would be understandable if SMSF members overlooked the compliance obligations for pension payments. “Although it’s imperative… Read More »SMSFs warned to ensure minimum pension paid before 30 June
Almost half of people with superannuation pensions are only drawing down at the minimum levels, according to research by the Actuaries Institute and CSIRO, but a significant portion of people are on track to exhaust their superannuation balances early. 49.97% of people with superannuation pensions in non-industry super funds are… Read More »Almost half of super pensions only drawn down at minimum levels
The Government has released the final report of the retirement income streams review, which recommends no changes to the minimum pension drawdowns. A review of retirement income streams was a 2013 election promise, with a discussion paper released in July 2014. The final report comes only days from the likely start of… Read More »Review leaves super pension drawdowns at current levels
The Government will soon respond to a review of retirement income streams, including possible changes to minimum drawdown levels. Assistant Treasurer, and Minister for Small Business, Kelly O’Dwyer said the Government would respond to the review “very shortly and will have more to announce on that when we do.” In… Read More »Government to respond to income streams review ‘very shortly’
Taxpayers Australia is calling for the reintroduction of pension drawdown relief, as low interest rates are forcing SMSFs to restructure their investments to fund pension payments The organisation said the minimum drawdown requirements on account based pensions are “too high in an environment where deposit interest rates offered by financial institutions… Read More »Bring back pension drawdown relief, says Taxpayers Australia
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.