What if i don’t draw out the minimum income stream?

Account Based pensions from super allow the withdrawal of up to the full amount, but have a minimum based on your age. In other words if you wanted to not touch the money to preserve it as long as possible, you can’t, but must draw the minimum amount.

This is aged based: and due to the GFC depleting fund values, only 75% of the min must be drawn (was 50% the last three years) to help preserve money in the fund to last longer:

Age                   Min. Draw        2011-2012 Concession

Under 65         4%                     3%

65-74               5%                     3.75%

75-79               6%                     4.5%

80-84               7%                     5.25%

85-89               9%                     6.75%

90-94              11%                    8.25%

95 over            14%                   10.5%

To calculate you multiply the account balance by the %

If the minimum is not drawn, the fund will be in breach/contravention of the super law. Every fund is audited and if the auditor is of the view that a super fund breaches the superannuation laws, he or she must notify the trustees of the super fund upon discovery of the breach. In some cases, the process also involves the super fund’s auditor reporting the breach to the ATO, subject to satisfying some preliminary steps.

Not all super breaches have to be reported to the ATO, but an approved auditor of a self-managed super fund must follow strict guidelines to determine whether a contravention of the super rules should be reported to the ATO. Read about the reporting criteria on the ATO website here.

If a contravention involves a financially insignificant amount, and it is a first ‘offence’ then a fund auditor is not required to report the breach to the ATO, except when concerned about the fund’s financial position, or when the auditor believes that a contravention of the super laws may affect the interests of the fund member.

See Schedule 7 of the Superannuation Industry (Supervision) Regulations 1994 or Superannuation Industry (Supervision) Amendment Regulations 2011 (No. 1)


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