Moratorium on minimum draw requirements for super funds - 28/06/2009

The Commonwealth government has announced a moratorium on minimum draw requirements for account-based pensions for the second half of the 08/09 year. This is intended as a relief measure so that retirees can avoid selling investments in the current market and crystallising losses. The minimum draw now required for the purposes of the moratorium is 50% of the amount otherwise required. This means that if 50% of the current minimum has already been taken, no further draw is required in this financial year.

What is not commonly known is that some SMSF deeds will require amendment to take advantage of the available relief. Before taking advantage of the available relief, all SMSF trustees and their advisers should satisfy themselves that their deed expressly allows the reduction in the minimum drawdown by allowing the payment of less than the minimum where the reduction is permitted by the regulator (ATO).

Of course, funds subscribed to Super Depot can now adopt their revised SMSF Rules and need to take no further action regarding the new Regulations.

If you would like information on Super Depot, please contact our office.

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