The Government is helping retirees to manage the impact of the fluctuations in the share market on their superannuation balances by temporarily reducing the minimum pension drawdown requirements.
The amounts required to be drawn down for the 2019/2020 year and the 2020/2021 years have been cut by 50%.
If we have already communicated to you the required pension amount to be withdrawn from your SMSF for the 2020 year this amount should now be reduced by 50% (halved).
In addition the deeming rates of income on investments have also been reduced by a further 0.25% in addition to the 0.50% reduction announced earlier in March 2020. The new deeming rates come into effect on 1 May 2020 with the upper deeming rate being 2.25% and the lower deeming rate to be 0.25%.
ADDITIONAL INFORMATION
For additional information regarding the above we have inserted the government fact sheets in the resources section of our website. These provide examples that may assist you in determining you eligibility and how it may apply to you.
If you wish to discuss any of the above in relation to you specific situation please feel free to contact our office by phone or email.