The Government has registered Superannuation Legislation Amendment (Superannuation Drawdown) Regulations 2022 which extends the temporary 50% reduction in minimum annual payment amounts for superannuation pensions and annuities by a further year to 30 June 2023.
The 50% reduction in minimum pension drawdowns was due to end on 30 June 2022.
However, the Government has decided to extend the 50% reduction to the year ending 30 June 2023, such that superannuation funds can avoid selling assets in order to satisfy the minimum drawdown requirements.
The reduction in the minimum payment amounts for the 2023 income year applies to account- based, allocated and market linked pensions.
Annual minimum payments are determined by age of the beneficiary and the value of the account balance as at 1 July each year.
|
Age of beneficiary (years) |
Standard percentage factor (%) |
Minimum drawdown for the 2020, 2021, 2022 and 2023 income years with 50% reduction |
| 0-64 | 4 | 2 |
| 65-74 | 5 | 2.5 |
| 75-79 | 6 | 3 |
| 80-84 | 7 | 3.5 |
| 85-89 | 9 | 4.5 |
| 90-94 | 11 | 5.5 |
| 95+ | 14 | 7 |
No maximum annual payments apply, except for transition to retirement pensions which have a maximum annual payment limit of 10% of the account balance at the start of each financial year.
For more information on this change to legislation, visit Superannuation Legislation Amendment (Superannuation Drawdown) Regulations 2022.
Ref: Federal Register of Legislation, Superannuation Legislation Amendment (Superannuation Drawdown) Regulations 2022, 31 March 2022