Extension of temporary reduction in superannuation minimum drawdown rates
On 29 May 2021, the government announced an extension to the temporary reduction in superannuation minimum drawdown rates.
As part of the response to the coronavirus pandemic, the Government reduced the superannuation minimum drawdown rates by 50% for the 2019-20 and 2020-21 income years, ending on 30 June 2021.
This is an extension of the measure that was introduced in 2020 as part of the government’s response to COVID-19.
If the extension is passed, you will be able to continue to take advantage of the 50% temporary drawdown reduction until 30 June 2022.
The current measure applies for the 19-20 and 20-21 financial years and is due to end on 30 June 2021.
This announcement extends that reduction to the 2021-22 income year and continues to make life easier for retirees by giving them more flexibility and choice in their retirement.
For many retirees, the significant losses in financial markets as a result of the COVID-19 crisis are still having a negative effect on the account balance of their superannuation pension. This extension builds on the additional flexibility announced in the 2021-22 Budget.
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