Minimum pension rates
On the 25th March, the Australian government announced a further extension to the temporary reduction in superannuation minimum drawdown rates. The measure was introduced in 2020 as part of the government’s response to COVID-19 which has been in place for the 2019–20, 2020–21 and 2021–22 financial years and is being extended to the 2022–23 financial year.
This government measure started in March 2020 in response to COVID-19’s impact on investment markets. Reduced minimum rates provided clients the option to manage their income payments differently during difficult times.
The minimum drawdown requirement is recalculated on 1 July each year, and we anticipate the minimums to be applied in most products automatically however if you would like more than the revised minimum in the 2022/23 financial year, please contact the office to discuss your situation with your Financial Adviser.
The table below outlines the temporary minimum drawdown rates based on age bracket for the upcoming financial year:
It is worth noting, from 1 July 2023, this temporary reduction ends, and the government minimum drawdown rates for the 2023/24 financial year onwards will revert to the default rate.
Social Security Changes To Be Aware Of
We have also seen some recent changes to the pension rate and Centrelink payments that you should be aware of. It is important that you are aware of the changes in your benefits to avoid any surprises when they arrive.
It’s worth noting that the adult pension rate has increased. If you notice this, don’t panic! Full details and exact figures on how much each category of the pension rate has increased can be found on the Department of Social Security website. If you have any questions or concerns, please don’t hesitate to get in touch.
Take advantage of Pride Advice’s Liaison Service
There comes a point in most people’s lives when dealing with Centrelink becomes a necessity. For the unprepared, this can be a frustrating and dispiriting affair. It takes time and effort to keep up with changes to government allowances, and it takes experience to navigate the system with any sort of efficiency.
At Pride Advice, we offer a Centrelink Liaison Service designed to remove the stress and hassle. It’s our job to stay up to date with any changes to allowances, and our experience with Centrelink removes any unnecessary to-ing and fro-ing. We can help with one-off enquiries or provide ongoing management.
DVA Support Service
We can also provide assistance for those who receive support from the DVA. We’re well-versed in this area and can take the burden of dealing with the system off your shoulders so you can focus on the things you actually enjoy doing. Get in touch with our team to learn more.