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Federal Budget 2022-23: Superannuation
Article

Federal Budget 2022-23: Superannuation

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.

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This content is general commentary only and does not constitute advice. Before making any decision or taking any action in relation to the content, you should consult your professional advisor. To the maximum extent permitted by law, neither Pitcher Partners or its affiliated entities, nor any of our employees will be liable for any loss, damage, liability or claim whatsoever suffered or incurred arising directly or indirectly out of the use or reliance on the material contained in this content. Pitcher Partners is an association of independent firms. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities. Liability limited by a scheme approved under professional standards legislation.

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