With the end of the financial year almost upon us, the ATO have just released a reminder to SMSF trustees about the temporary measure to reduce the minimum pension that is required to be taken for the year from SMSF income streams.
As part of the Government’s overall response to the COVID-19 situation, it was recognised that many retiree SMSF account balances may have been significantly negatively affected, and as such, some relief could be provided by reducing the minimum pension they are forced to withdraw for the year.
The result is that the minimum pensions have been reduced by 50% for the 2019-2020 and 2020-2021 financial years. Of course, remember that these are minimum rates, and members can receive any amount above this.
These measures apply to account based pensions, allocated pensions, and market linked pensions.
CLICK HERE to see the ATO table that lists the minimum pension rate based on a member’s age, along with some examples.