Minimum Pension Drawdown: Don’t Miss the Deadline

Posted at 08:17h in News, Retirement, Superannuation by Simmons Livingstone

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If you or a family member are receiving an account-based pension through your SMSF, it’s essential to ensure the minimum drawdown amount is met before 30 June 2025.

Here’s what you need to know:

The minimum payment is calculated using your account balance at 1 July 2024 and an age-based percentage factor.
If the pension started part-way through the financial year, the amount is calculated on a pro-rata basis.
Failing to make the minimum payment may mean the pension no longer qualifies for tax exemptions, which could lead to additional tax liabilities for the fund and member.

It’s easy to overlook – especially if you’re relying on automated payments that haven’t been reviewed in a while.

Not sure if you’re on track? Contact our superannuation team on 1800 618 800 or email admin@simmonslivingstone.com.au.