MINIMUM PENSION LEVELS

As 30 June 2016 approaches, members with account based pensions in their Self Managed Superannuation Funds should take to the time to ensure they have requested and received the correct amount of minimum pension.

Minimum pension levels are calculated with reference to the member’s age and account balance at 1 July in the year the pension is paid (or the date within the year the pension is commenced for the first time). The rates for the year ending 30 June 2016 are:

Age                            Required Payment
Under 65                           4%
65-74                                5%
75-79                                6%
80-84                                7%
85-89                                9%
90-94                                11%
95 and over                      14%

There is no maximum amount other than the member’s superannuation balance. 

The pension must be paid and cleared to the member’s personal bank account prior to 30 June to be effective.  Failure to meet the minimum pension requirements is likely to result in the member balance returning to accumulation status and losing its’ tax free pension status.

 

Please contact Andrew Marshall or Janine Orpwood at Langley McKimmie Chartered Accountants on (03) 5427 8100 to discuss further.

We provide accounting and wealth management services to clients in Woodend, Gisborne and Macedon Ranges areas within Victoria Australia.