Senator Nick Sherry, Minister for Superannuation and Corporate Law, today announced the release of regulations which give effect to the Government's decision to halve the minimum payment amounts for account-based pensions for this financial year.
The regulations, Superannuation Industry (Supervision) Amendment Regulations 2009 (No. 2) reduce the minimum payment amounts for account-based, allocated and market-linked (term allocated) pensions by 50 per cent for 2008-09. Similar amendments have been made to the Retirement Savings Accounts Regulations 1997.
This temporary relief addresses concerns that the minimum drawdown requirement for this financial year was based on account balances at 1 July 2008, when equity values were higher.
"The release of these regulations removes any doubt that pension payments can cease for the remainder of this financial year where the pension has already paid out half of the previous minimum," Minister Sherry said.
"The Government will continue to monitor market conditions and will examine options for a longer-term solution to this issue following Australia's Future Tax System Review," Minister Sherry said.
The regulations can be found on the Federal Register of Legislative Instruments website at www.comlaw.gov.au.