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5 thoughts on “No need to raid the super fund piggy bank as Government announces further extension of reduced minimum pensions

  1. It appears that the Federal Government has back flipped on Shorten’s late November 2011 press release announcing that the 25% discount applied to minimum pension rates in 2011-12 would be extended into the 2012-13 financial year due to ongoing market volatlity in order to help preserve pension account capital. Last night’s Budget states that the discount will “phase out” (30/06/2012) and “return to normal in 2012-13.

  2. Hi Barry,

    Thanks for your comment, you’ve help me with my sanity. In burning the midnight oil last night, I could have sworn I read this, but in going back through the content, I couldn’t find it so left it out. This comment was interesting as it contradicts the MYEFO announcement and markets certainly haven’t bounced back…

    Regards,
    Aaron

    • It appears that you and I are not the only one’s to struggle with the report that the 25% discount applying to pension draw downs would phase out this financial year. That was the take out from last year’s budget! Various reports have the minimum rate for 2012-13 at 3% or 4% for pensioners under 65. Some discounted the reference to the 2012-13 rate altogether! After a barrage of queries hit the Minister’s office, we now have clarification that the 25% discount will extend through 2012-13 and return to normal (4%) in 2013-14. Therefore, no ‘back flip’ from Bill!

      • Thanks for the update Barry, it didn’t make any sense to announce in the MYEFO and then backflip so quickly… Although, it wasn’t beyond the realms of possibility with their Labor Party’s current record on policy decisions!!

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