Date of article: 18 April 2022
Last updated: 18 April 2022
The treasurer handed down the 2022-23 Federal Budget on 29 March 2022.
There were no new announcement relating to the superannuation system, except for extending the concession of halving of the minimum pension drawdown requirements for account-based pensions and similar products for a further year to 30 June 2023.
Given ongoing volatility, this change will allow retirees to avoid selling assets in order to satisfy the minimum drawdown requirements.
| Age (on 1 July or commencement) | Normal Minimum pension % | Reduced rates by 50 per cent for the 2019-20, 2020-21, 2021-22 and 2022-23 financial years % |
| Under age 65 | 4% | 2% |
| 65 – 74 | 5% | 2.5% |
| 75 – 79 | 6% | 3% |
| 80 – 84 | 7% | 3.5% |
| 85 – 89 | 9% | 4.5% |
| 90 – 94 | 11% | 5.5% |
| Age 95 and over | 14% | 7% |
Personal tax
For individuals, there will be a one-off $420 cost of living tax offset for those that are eligible. It will be provided through an increase to the low and middle income tax offset (LMITO) for the 2021-22 income year, and paid from 1 July 2022 when tax returns for 2021-22 income year are submitted. Taxpayers with incomes of less than $126,000 will receive the one-off cost of living tax offset.
The Government will provide a $250 cost of living payment to eligible recipients, including those receiving certain Government payments (including age pension, disability support pension, parenting payment, carer payment, jobseeker payment) and concessional card holders.
Do you need help with your situation or if you wish to discuss the above, please contact us. Our contact details.
