If you’re receiving a pension from your self-managed super fund (SMSF), it’s important to ensure you meet the minimum pension drawdown requirements each financial year.
These minimums are set by the government and are based on your age and the value of your pension account on 1 July.
Meeting the minimum is essential because if you don’t draw down enough, your pension may be treated as having stopped. This can have tax implications – for example, your fund might lose its tax exemption on earnings for that income stream for the entire year.
If you haven’t already, it’s worth checking that your pension payments meet the full minimum required for the 2024-25 financial year. For the 2024–25 financial year, the full standard minimum drawdown rates are back in effect. For example, if you were aged 65–74 on 1 July 2024, you’re required to withdraw at least 5% of your pension balance by 30 June 2025.
If your payments fall short, you have until 30 June to correct it; but the sooner you act, the better. Planning early can help avoid rushed decisions and ensure your SMSF stays compliant.
If you’re not on track, there’s still time to make additional withdrawals before the 30 June deadline.
