The ATO reminds taxpayers that an SMSF must pay a minimum amount each year to a member who is receiving a pension that commenced on or after 20 September 2007 (e.g., account-based pensions). If the minimum payment is not made by 30 June, this can result in adverse taxation consequences for the member
In response to COVID-19, the government temporarily reduced superannuation minimum drawdown requirements for account-based pensions and similar products by 50% for the 2020, 2021, 2022 and 2023 financial years.
However, for the 2024 financial year, the 50% reduction in the minimum pension drawdown rate will no longer apply.
This means that, from 1 July 2023, when taxpayers calculate the minimum annual payment for their pension, the 50% reduction will not apply to the calculated minimum annual payment.Editor: Contact our office if you require assistance in determining the minimum pension payment that must be made in the 2024 financial year.