The superannuation law requires a minimum amount to be paid from a pension account each year in order for the account to be treated as being in retirement phase, and entitle the fund to income tax exemption on income arising from assets represented by the account. The minimum drawdown is a percentage of the balance of the account at the preceding 1 July, based on the age of the member. In recognition of the general decline in asset values caused by the COVID-19 pandemic, the applicable percentages will be reduced by 50% in the 2020 and 2021 financial years. The revised percentages are:
Unfortunately, there is no mechanism for amounts already withdrawn to be repaid to the fund, other than as contributions where the member’s contribution caps permit this.
The material contained in this publication is for general information purposes only and does not constitute professional advice or recommendation from Nexia Edwards Marshall. Regarding any situation or circumstance, specific professional advice should be sought on any particular matter by contacting your Nexia Edwards Marshall Adviser.