While the worst of the COVID-19 pandemic is (hopefully) behind us, trustees now must focus on how to meet their regulatory obligations for 2020 – 2021.
Meeting new pension requirements
Due to COVID-19, the Government has reduced the minimum drawdown requirements by half for pensions in 2020-21. While the minimum has been reduced, failing to meet the minimum drawdown will still mean your SMSF will be subject to 15% tax on pension investments instead of being tax free.
If you receive regular pension payments, such as weekly or monthly payments from you SMSF, you have more than likely met the required minimum payment for this year. If you are unsure, it is best to contact us now to ensure you have enough time to withdraw any shortfall.