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Minimum drawdown rate reduction extended until June 2022
The Government has announced the temporary 50% reduction in superannuation minimum drawdown rates will be extended until 30 June, 2023, a move which has been welcomed by the industry.
The measure was first introduced in 2020 as a response to COVID-19 and was in place for the 2019/20 and 2020/21 financial years.
Around 1.8 million people were expected to be affected by the move.
The Government also pledged to not increase taxes in superannuation in the next Parliament.
Acting chief executive of the Financial Services Council, Blake Briggs, said: “Given recent volatility in financial markets the Government’s commitment to extend the reduction in the minimum drawdown rate is positive as it will protect retirees from crystalising transitory reductions in their superannuation.”
“All Australians are entitled to certainty that the tax and contribution rules in superannuation will not be subject to constant tinkering. Stability in superannuation taxes is key to maintaining public confidence in Australia’s retirement system.”
AUTHOR
Laura Dew
Laura Dew is editor at Super Review. Prior to joining SR, she spent five years working at Investment Week in the UK covering asset and wealth management.
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