Superannuation and COVID-19: Reduction in minimum payments for super pensions
The Government has reduced the minimum annual payment required for account-based pensions and annuities, allocated pensions and annuities and market-linked pensions and annuities by 50% in the 2019/20 and the 2020/21 financial years. For ATO information, click here.
For account based pensions, the reduction of the rates is illustrated in the below table.
Age |
Normal minimum withdrawal rates |
Reduced rates by 50% for the 2019/20 and 2020/21 income years |
|---|---|---|
| Under 65 |
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 or more | 14% | 7% |
Affected SMSF trustees and members may also consider ceasing their pension in whole or in part.
For further information please contact:
Rod Payne
Principal
T: 03 5226 8541
E: rpayne@ha.legal
Alasdair Woodford
Senior Associate
T: 03 5225 5217
E: awoodford@ha.legal
