In media release No 2011/162, issued 29 November 2011, the Assistant Treasurer and Minister for Financial Services and Superannuation, Bill Shorten, announced an extension of drawdown relief for account-based pensions for the 2012-13 year, with a 25% reduction in the minimum payment amounts for these products.
The Government halved the minimum payment amounts for account-based pensions for the 2008-09, 2009-10 and 2010-11 financial years. A more limited form of drawdown relief was provided for 2011-12, through a 25% reduction in the minimum payment amounts.
"The Government had indicated previously the minimum payment amounts would return to normal in 2012-13. However, equity markets continue to be volatile and prices remain significantly below the levels reached prior to the GFC. Continuing the current limited drawdown relief for a further year will assist retirees to recoup capital losses on their pension portfolios as equity markets recover over time," Mr Shorten said.
Regulations giving effect to this change will be made before the new financial year.