Contributor: Craig Mellors, Financial Adviser
During Covid-19, the Government introduced a temporary reduction in minimum account-based pension payments to provide support through an uncertain time in the economy.
Starting from 1 July 2023, the temporary reduction in account-based pension minimums will no longer apply. This means that the minimum payment requirements will revert to their standard levels, as determined by the Australian Taxation Office (ATO).
The minimum required payment depends on your age and the following percentages will apply for the 2023/2024 financial year:
*Calculated on your account balance on 1 July 2023
Unless you nominate a higher pension payment than the required minimum, your investment platform provider will automatically increase your regular pension payments to the new minimums from 1 July. There is no action required by you.
Should your pension be paid via a Self Managed Super Fund, we will continue to work with you throughout the year to help you meet your minimum pension payment requirements.
Please contact Heard Financial if you have any questions or wish to discuss the changes in more detail.