Australian Government announces extension of minimum drawdown rule for self-funded retirees
By 9News Staff – March 2022
Ahead of the Budget and election, the Australian Government tonight has announced it will extend the minimum drawdown rule for self-funded retirees.
It’s a move that’s expected to benefit 1.8 million who are subject to the 50 per cent reduction in superannuation minimum drawdown rates for account based pensions and similar products.
“We recognise the valuable contribution self-funded retirees make to the Australian economy and the sacrifices they made to provide for their retirement,” Treasurer Josh Frydenberg said in a statement on Friday night.
Ahead of the Budget and election, the Australian Government tonight has announced it will extend the minimum drawdown rule for self-funded retirees (AAP)
“That’s why, as part of our plan for a stronger future, the Government is extending the 50 per cent reduction in minimum drawdown requirements until 30 June 2023.”
“This will provide retirees with greater flexibility and certainty over their savings.”
The minimum drawdown requirements dictate the lowest possible amount a retiree can draw from their superannuation in order to qualify for tax concessions, such as tax-free superannuation in retirement.
The rule was designed to help support self-funded retirees throughout the COVID-19 pandemic and recovery period (AAP)
If the minimum withdrawal is not met, superannuation payments are subject to tax.
The rule, designed to help support self-funded retirees throughout the COVID-19 pandemic and recovery period, was first announced for the 2019-20, 2020-21 and 2021‐22 years. It will now be extended another year.
The Government has also promised no further tax increases on superannuation if re-elected.
Treasurer Josh Frydenberg made the announcement of the extension to the rule in a statement on Friday night (Sydney Morning Herald)
“At the last election, we promised there would be no new taxes on superannuation,” Mr Frydenberg said.
“Over the last three years we have honoured that commitment.”
He added: “It’s not a guarantee Labor can be trusted to match.”