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From 1 July 2023 you could be getting more money each pay from your Income account following the Australian Government’s decision to not extend the temporary reduction to minimum pension drawdown rates.
The minimum drawdown requirements determine the minimum amount that a retiree must draw each year from their superannuation pension in order to qualify for tax concessions.
The Australian Government change from 1 July 2023 reverts minimum drawdown rates back to the levels they were at before COVID-19 emerged in early 2020.
In 2020, the Government introduced a temporary reduction by 50% to minimum drawdown requirements for account-based pensions, such as the QSuper Income account. It aimed to help retirees through market uncertainty. The reduction ends on 30 June 2023.
The increase brings minimum drawdown rates back to their usual pre-COVID-19 levels and means you could soon get more money each pay from your Income account.
You can control how much you pay yourself each year from your Retirement Income account or Transition to Retirement Income account, but you need to receive at least a minimum amount, which is set by the Government.
Your minimum payment amount is a percentage of your Income account balance as at the start of the financial year, or the date your Income account started, if later.1
Here are the minimum payment percentages that will apply from 1 July 2023.
Your Income account is designed to be flexible, so you can personalise it to meet your needs in Member Online.
The minimum drawdown rate will be reflected in your Income account and your payments will be automatically adjusted from 1 July 2023 if required.
If you want to talk through how your new payments could affect you, speak to your financial adviser or book an appointment with one of our qualified financial advisers which is included your membership at qsuper.qld.gov.au/advice.3
Or contact us on 1300 360 750 if you have any questions, or at qsuper.qld.gov.au/contact-us
1. If you open your Income account partway through a financial year, your minimum payment will be a pro rata amount based on your full annual payment. The exception to this is if you open your Income account in June, in which case you don’t have to receive a payment until 30 June of the next financial year.
2. If you have a Transition to Retirement Income account, a maximum annual payment limit of 10% applies. This means you cannot receive more than 10% of your account balance each financial year. Lump sum withdrawals are generally not available for Transition to Retirement Income accounts, like they are with an Income account.
3. Employees in the Australian Retirement Trust group provide advice to members as representatives of QInvest Limited (ABN 35 063 511 580, AFSL 238274). QInvest is a separate legal entity responsible for the financial services it provides. Eligibility conditions apply. Refer to the Financial Services Guide (pdf) for more information.
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