Q: I am drawing an account-based pension from my SMSF. I am turning 65 in June 2013. Will I need to draw a minimum of 3% or 3.75% for the 2012/2013 year? Or, in other words, what is the determining age, the one at the start of the taxation year, or the age attained in the course of the taxation … [Read more...]
Q: I run our SMSF. I wish to retire at 55. I am a little confused about the 4% minimum rule for pensions. Do I have to withdraw 4% of my total accumulation SMSF fund, or do I move some of the assets into a pension fund and then draw 4% a year (or whatever the pension relief amount is)? A: You ask … [Read more...]
Q: I am aware that the minimum amount of pension withdrawal is normally 4% (for under 65s) of the pension account balance (currently 3% for 2012/2013). Is there now any MAXIMUM amount of pension required to be drawn from a super fund? If not, is this still the case for account based pensions, … [Read more...]
Q: I wondered if a SMSF pension that was started at the relief rate of 3%, would it then have to increase to the 4% once the relief period expired, or would it remain at 3% because it was started at that rate? The temporary pension payment relief (75% of the usual minimum pension payments) … [Read more...]
SuperGuide often receives questions from readers asking what happens if they don’t withdraw the minimum pension amount required to be paid each year from their pension account, especially when the underpayment is due to an honest mistake, or due to circumstances beyond their control. Before … [Read more...]
Q: I am 63. I want to retire next year but I am not sure if I want to access my super benefits yet. I have heard that when I retire, I must withdraw some super benefits each year, otherwise I won’t receive tax-free super benefits. Can you please clarify the rules for me? A: When you retire, you … [Read more...]
For the 2012/2013 year, the concessional contributions caps for over-50s has changed dramatically – the concessional cap has halved for over-50s, while the concessional cap for under-50s, and the non-concessional contributions caps for everyone, remain at 2011/2012 levels. The ATO has also … [Read more...]
Note: Click here if you are looking for the latest Age Pension rates When you start a superannuation account-based pension you must withdraw a minimum amount each year, based on your age and size of your account balance, to enable the earnings on your super pension account to be … [Read more...]
The 2012 Federal Budget has introduced further changes to the super rules, which we cover in other articles on this website. In this article, we explain the super changes the government snuck through in November 2011 although Federal Treasurer, Wayne Swan, may be hoping that we forget his earlier … [Read more...]
The federal government must reduce the minimum pension payment required to be withdrawn from super pension accounts to at least half of the usual rate. By reinstating the pension relief to 50% of the usual minimum payment, the Government can help retirees to meet minimum pension payment … [Read more...]
On 10 May 2011, Federal Treasurer Mr Wayne Swan released the 2011/2012 Federal Budget. Although Mr Swan promoted the package of documents as delivering jobs and spreading the benefits of the mining boom to more Australians, the May 2011 Budget also delivered several superannuation measures … [Read more...]
Q: Delighted with your site and books. My question for advice/clarification is as follows. With a SMSF with two members both having accumulation and pensions, when you draw down pension amounts the drawdown amount reduces the pension balance in accordance with the concessional/non concessional … [Read more...]
Update: The relevant regulations extending the pension payment relief for the 2010/2011 year are now in place. For verification, see Schedule 7 of the Superannuation Industry (Supervision) Regulations 1994. Finally, we have some good news for those retirees struggling to recoup savaged … [Read more...]
Superannuation Concessional contribution cap cut to $25,000 from July 2009 Government co-contribution cut to $1000 from July 2009 ‘Lost’ account balances of less than $200 to be transferred to the ATO Superannuation pensions Gross tax-free superannuation income NOT be … [Read more...]
Q: I wonder if you have any more information on the Government's recent changes to the minimum drawing requirements (see ‘Relief in hard times for retirees’)? I understand that in January, the Government halved the rate at which a pension must be drawn from a fund in pension stage, i.e. 4% … [Read more...]
