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Providing Support for Retirees – Reduction in Super Minimum Drawdown & Social Security Deeming Rates

Aim

Providing retirees with more flexibility as to how they manage their superannuation assets.

Benefit

Allowing retirees to drawdown less from their superannuation by 50% for the 2019-2020 and 2020-2021 financial years. 

There is also a reduction to the upper and lower social security deeming rates by a further 0.25% in addition to the 0.50% reduction announced in the previous stimulus package on 12 March 2020. Ultimately, a 0.75% total reduction in the upper and lower deeming rates. 

How it works?

Under the current legislation, you are required to drawdown a minimum percentage from your Income account each financial year based on your age. Under the temporary reduction in minimum drawdowns, this minimum percentage has been reduced by half. Here’s how it works depending on your age:

What you need to do?

This will automatically apply, so there is nothing you need to do. You may want to speak to your financial adviser to discuss how to manage your assets to make the most of this situation. If you need help choosing an adviser, POP Business can help you find someone we trust. 

If you need assistance, please reach out to our friendly accountants on 1300  180 630 or if you would like us to give you a call, Book in your 30 minute consultation for $50 to get the answers you need today.

Sidney Cachuela

Sidney Cachuela

Sidney Cachuela is a Business Mentor and Associate Financial Advisor who genuinely revels in solving the sorts of wicked problems facing business. His experience includes working with high profile wealth managers and financial advisers, including managing $100m of client FUM across 200 clients. In 2018 he co-founder POP Business, a cloud-based accounting firm. Sidney is a complete technophile, and believes that innovation and new tech are the way forward. POP Business is his labour of love. He has expertise in helping small businesses with a range of accounting services, including: financial advice, accounting and bookkeeping, GST tax planning, as well as company, trust and partnership tax returns and more.

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