The Government has broadly left the superannuation system unchanged, with a minor extension to the minimum drawdown percentage to 30 June 2023.
The Government confirmed that it will continue with the 50% minimum pension drawdown reduction for account-based superannuation pensions, extending the measure for a further year to 30 June 2023. This measure is intended to minimise the forced sale of investments to pay pensions, due to the ongoing volatility in investment markets.
The table below details the reduced minimum drawdown requirements for the 2023 income year.
Age of pension beneficiary on 1 July 2022 (or age at start of pension if first year) |
Standard minimum drawdown percentage |
Reduced minimum drawdown percentage for the 2023 income year |
|---|---|---|
Under age 65 |
4% |
2% |
65 – 74 |
5% |
2.5% |
75 – 79 |
6% |
3% |
80 – 84 |
7% |
3.5% |
85 – 89 |
9% |
4.5% |
90 – 94 |
11% |
5.5% |
Age 95 and over |
14% |
7% |
Any individual with an account-based pension, allocated pension or market-linked pension is eligible to reduce their minimum pension for the 2023 income year by up to 50%. The pension reduction is optional if it suits an individual’s circumstances.
