In response to COVID-19, the Government is providing financial assistance to support Australians in many ways. One of these measures includes a reduction in minimum drawdown amounts for the 2019/20 and 2020/21 financial years.
What is the reduction?
All holders of account-based pensions and similar products will be entitled to a 50% reduction to their minimum drawdown rate. This is determined by age and the updated rates can be viewed in the Providing support for retirees factsheet.
Why is it changing?
The temporary reduction in drawdown rates has been implemented to benefit retirees with account-based pensions and similar products by reducing the need to sell investment assets to fund minimum drawdown requirements.
How do I reduce my payment?
Existing pension holders will need to notify us if you’d like to change your current payment. You can do this by completing the Update your pension details form below.
Although you may be eligible for the reduction, you might not be able to receive it this financial year in full, if you’ve already been paid your minimum payment amount. Under the new reduction rates your current payment, whether that is fortnightly, monthly, quarterly, bi-annually or annually may have already reached the new minimum payment amount. Therefore, you’ll need to notify us if you wish to no longer receive any further payment for this financial year or if you’d like to receive the reduced amount for the remainder of the year. If you don’t notify us of either of these options, your payment will continue as usual.