Free | SMSF Updates

Extension of temporary reduction in super minimum drawdown rates

In 2020 as part of the Government’s response to COVID-19, the minimum drawdown rates for SMSF members receiving an income stream were reduced by 50%. This was in response to the fact that at the time, many retirees may have had significant financial losses due to the effect that COVID was having on financial markets at the time. This applies to account-based pensions and annuities, allocated pensions and annuities, and market-linked pensions and annuities

Now, even though asset markets have recovered (with share markets in particular hitting all time highs recently), the Government has extended this temporary measure until 30 June 2022. So all up, these measures will apply to the 2019–20, 2020–21 and the 2021–22 financial years.

Example: age 65 to 74

If a SMSF member is age 65 to 74, they would normally have a minimum drawdown of 5.0%. This means that if they have an existing account based pension of say $500,000 (valued at 1 July 2021), they would normally have to draw out at least 5% ($25,000) over the course of the 2021/22 financial year. However with the 50% reduction, they only need to draw out $12,500 as the 50% reduction continues until 30 June 2022.

Here are the minimum percentages for each age group:

Age 2013–14 to 2018–19 income years (inclusive) 2019–20 to 2021–22 income years (inclusive)
Under 65 4.0% 2%
65–74 5.0% 2.5%
75–79 6.0% 3%
80–84 7.0% 3.5%
85–89 9.0% 4.5%
90–94 11.0% 5.5%
95 or more 14.0% 7%


Note: These withdrawal factors are indicative only, and the precise amounts for your personal situation should be assessed by a financial professional.


Issued by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec). Warning: Past performance is not a reliable indicator of future performance. Any advice is General Advice without considering the objectives, financial situation and needs of any person. Before making a decision read the PDS and consider your financial circumstances or seek personal advice. Disclaimer: Lonsec gives no warranty of accuracy or completeness of information in this document, which is compiled from information from public and third-party sources. Opinions are reasonably held by Lonsec at compilation. Lonsec assumes no obligation to update this document after publication. Except for liability which can’t be excluded, Lonsec, its directors, officers, employees and agents disclaim all liability for any error, inaccuracy, misstatement or omission, or any loss suffered through relying on the document or any information. ©2021 Lonsec. All rights reserved. This report may also contain third party material that is subject to copyright. To the extent that copyright subsists in a third party it remains with the original owner and permission may be required to reuse the material. Any unauthorised reproduction of this information is prohibited. 

Register for our FREE newsletter to receive investment insights, education, and SMSF trustee updates