SMSF Minimum Pension Drawdown Calculator
Standard rates apply (the COVID-era 50% reduction ended 30 June 2023). Minimum is calculated on the account balance at 1 July (or pro-rata commencement balance) and must be paid by 30 June to maintain ECPI.
Inputs
Result
- Age band
- 65–74
- Applicable percentage
- 5%
- Raw minimum payment
- $40,000.00
- Minimum payment (rounded to $10)
- $40,000.00
Failure to meet the minimum pension payment by 30 June causes the pension to lose tax-exempt status retrospectively for the FY — Exempt Current Pension Income (ECPI) under ITAA 1997 s 295-385 falls away and fund earnings revert to 15%.
Related
Statute
SIS Regulation 1994 Sch 7 (minimum pension standards). Standard rates apply from FY 2023-24 onwards; COVID-era 50% reduction ended 30 June 2023. Minimum payment is calculated on the balance at 1 July (or pro-rata commencement balance) and must be paid by 30 June each year to maintain ECPI under ITAA 1997 s 295-385.Frequently asked questions
What happens if the minimum isn't paid by 30 June?+
The income stream is treated as having ceased on 1 July of the FY for tax purposes. ECPI is lost retrospectively for the entire year — fund earnings on the pension assets are taxed at 15% rather than 0%. The ATO has limited general powers of administration concessions for short-shortfalls (≤ 1/12 of minimum) where genuine inadvertent error.
How is the first year pro-rated?+
If the pension commences mid-year, multiply the standard minimum by (days from commencement to 30 June ÷ 365). Pensions starting in June can elect to defer the minimum until the next FY.
Did the COVID 50% reduction apply this year?+
No. The 50% reduction applied from 2019-20 to 2022-23 only. Standard rates resumed from FY 2023-24.
Last reviewed:
Not financial or tax advice. Educational estimate under SIS Reg 1994 Sch 7. Does not handle transition-to-retirement (TRIS) maximum 10%, market-linked or defined-benefit pensions, or reversionary commencements. Verify with your SMSF auditor or licensed adviser.