In the lead up to the Federal Budget each year, we see the Government strategically drip-feed information to the media about announcements that will form part of the budget papers. This year, we have seen the Government announce prior to the budget an extension of the current 50% temporary reduced minimum pension for the 2022-23 financial year.
The announcement last year to extend the 50% temporary reduced minimum seemed to be an after-thought, with no announcement in the Federal Budget appearing to be a glaring omission. However, this year, against the backdrop of wanting to ensure stability in superannuation measures for self-funded retirees, the Government has decided to extend the temporary relief for a further 12 months. This will apply to account-based pensions (incl. TRIS), along with market linked pensions – it will not apply to defined benefit income streams (as is currently the case).
Once again, this decision by the Government to extend this temporary measure provides members with some important strategic 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.
Federal Budget webinar
If you want to find out more about this topic and other announcements in this year’s Federal Budget, you can register for the upcoming free webinar being hosted by Smarter SMSF on the Federal Budget impact for SMSFs.