The minimum pension drawdown relief for superannuation pensions for the 2011 -2012 year will be reduced by 25%.  This was a 50% reduction in the previous year. It is expected that this drawdown relief be completely phased out by the 2012 -2013 year.

Several years ago the minimum pension was reduced to avoid super funds having to realise investments at a loss after the global financial crisis.

The government has decided we must be better off now.  Hence the minimum pension from 1st July 2011 is higher, and from 1st July 2012 will be back at 2009 levels.

Of greater importance – ensure in any SMSF to draw the minimum pension every year.  The penalty for non-compliance can be massive!