Using a speech at a Liberal Party federal council meeting in Canberra, the Prime Minister, Scott Morrison has announced an extension to the current temporary 50% minimum pension reduction for accounts-based income streams, in a move that clearly puts a stake in the ground to target self-funded retiree voters in the lead up to the next election. This extension will now go until 30 June 2022, providing an additional year with the 50% reduced minimum amount to draw for account based pensions and market linked pensions.
The decision by the Government to extend this measure provides members with a number of important considerations about how benefit payments are drawn over the financial year. You can read our previous post on ‘above temporary minimum pension amounts‘ to find out more about the considerations in dealing with benefit payments made by SMSF members throughout a financial year that will exceed the temporary minimum pension.
You can read the announcement of the extension to this temporary measure on the Prime Minister’s website.