In the 2011/12 Federal Budget, the government announced that the minimum pension drawdown relief would be gradually phased out.
In the 2011/12 financial year, the reduction would be discounted by 25% less than normal minimum requirements. By 1st July 2012, the normal levels of pension drawdowns will come back in.
As a result of continued volatility in the investment market, the government has announced that it would extend the current relief for a further year until 1st July 2013. This reduction applies to account based, allocated and market linked super pensions.
For the 2011/12 and 2012/13 financial years, the minimum pension withdrawals are as follows:-
| Age | Minimum pension factors |
| Under 65 | 3.00% |
| 65 – 74 | 3.75% |
| 75 – 79 | 4.50% |
| 80 – 84 | 5.25% |
| 85 – 89 | 6.75% |
| 90 – 94 | 8.25% |
| 95 and over | 10.50% |
The government has not announced will happen beyond 1st July 2013.
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