POWERED BY MOMENTUM MEDIA
Phase-out on drawdown relief begins
The drawdown relief on account-based pensions will soon be phased out, with the Federal Government delivering on its Budget promise to reduce the minimum payment amount by 25 per cent.
Under the phasing-out program outlined by the Government, minimum payment amounts will return to normal from 2012-13.
The Assistant Treasurer and Minister for Financial Services Bill Shorten said the regulatory changes represented a phasing-out of the drawdown relief which has applied over the past three years, based on a halving of the minimum payment amounts.
“The provision of drawdown relief for the past three years has reduced the need for account-based pension holders to sell assets at a loss in order to meet the minimum payment requirement,” he said. “This new relief will assist around 120,000 self-funded retirees recoup capital losses as markets recover.”
The Minister claimed the more limited drawdown relief for the new financial year recognised the rise in equity markets that had occurred since the global financial crisis, with the minimum payment amounts reverting to their normal levels from 2012-13.
AUTHOR
Mike Taylor
Recommended for you
Australia’s neutral cash rate may lie above pre-pandemic levels, driven by rising productivity outside of the mining industry.
Nominations and submissions have opened for this year’s Super Fund of the Year Awards.
The industry body has cautioned the government against implementing unnecessary regulations for private market investments, with ASIC currently exploring reforms in this space.
The industry fund has appointed Natalie Alford as its new chief risk officer, strengthening its executive team during a period of transformation.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
88.01 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
72.60 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
44.46 3 y p.a(%)
4
Pengana High Conviction Equities B
39.12 3 y p.a(%)
5
Pengana High Conviction Equities A
39.05 3 y p.a(%)
