Today the Labor Government announced that they would extend the minimum pension relief for another year.
The PM, Julia Gillard, stated that the government recognised the need for self funded retirees to retain as much money as possible within their superannuation funds during these volatile periods and it was hoped extending the minimum pension relief would help.
For the 2010/2011 financial year, the minimum pension payment for those who currently have an account based or a transition to retirement pension will be as follows:-
- Under 65 years of age - 2% of account balance as at 1/7/2010
- 65 – 74 years of age – 2.5% of account balance
- 75 – 79 years of age – 3% of account balance
- 80 – 84 years of age – 3.5% of account balance
- 85 – 89 years of age – 4.5% of account balance
- 90 – 94 years of age – 5.5% of account balance
- 95 years of age and over - 7% of account balance
As per previous years, we will advise all our pension clients of their minimum pension withdrawals at least a month before the end of financial year. If you would like to discuss or alter your pension for the 2010/2011 financial year, please give your accountant or financial adviser a call.
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