As part of the 2021/2022 Budget announcements, the government has confirmed the halved minimum pension drawdown rates will be extended for the next financial year.

The below table outlines the temporary minimum pension % you may be eligible for (note the relevant age is based on your age as at 1 July 2021):

Table showing minimum pension by age bracket

You may have already made changes to your superannuation pension last financial year, however as circumstances change – grandkids to spoil/travel (to Queanbeyan) – you may want to review the level of pension, keeping in mind you can choose to draw more (in many cases, much more) than the minimum.

Please feel free to contact us if you have any questions.

The Halletts Team

Older man with Superman robe and cane holding

You may have seen headlines recently announcing the indexation of the superannuation general transfer balance cap from $1.6m to $1.7m (essentially the maximum you can have to fund a retirement income stream) from 1 July 2021.

Two pigeons discussing jargon

Some of our clients who are already indulging in the joys of a retirement income from their super fund may have done a happy dance in anticipation, but unfortunately you can put those tap shoes away ……. the rule only applies to those starting a retirement income stream for the first time on or after 1 July 2021. There are a few very specific exceptions but in general, No Soup For You sorry.

Soup Nazi saying "no soup for you!"

Looking on the bright side for those yet to start a retirement income stream, there will be a little bit more room in the cap for you to grow your balance should you choose (either individually, or with the benefit of specific financial advice which considers your personal circumstances, which our little blurb above is not!)

At this stage there is no change to the concessional or non-concessional limits, with some prospect that they will lift from 1 July 2022……

Dory saying "Just keep swimming"

As we hurtle towards the end of the year that was, there may be many worthy causes asking for donations from you and we encourage you to be as generous as you can be. One of the factors you may wish to take into account is whether the organisation has Deductible Gift Recipient (DGR) status, which means that you can claim a tax deduction for any donation of over $2 in the 2021 financial year, so Sco-Mo will share the cost of your generosity with you at tax time.

The government keeps a handy list of organisations holding DGR status, which can be accessed on this page.

Remember to keep your receipt as proof of your donation!

Coins falling