Happy new FY!
June was a busy month for us here at Premier. Robert and Sue returned from their holiday and have hit the ground running. Katie celebrated her 21st birthday at home in Hay and Troy has been busy seeing clients for their annual reviews and end of FY matters.
From July 1, a number of changes are coming into effect that may affect you. Below we have summarised some key changes you may be interested in:
Pension drawdowns increasing
Australians who are currently drawing an income stream from their superannuation funds are required to draw a minimum (percentage) of these funds each financial year.
Moving into the 2023/24 financial year, the minimum income drawdown levels are increasing. Effective from July 1, 2023, the below drawdown rates now apply to all superannuation income streams.
These rates are set by the government at the commencement of each financial year. The rates are based on your age and increase as you get older.
| Age at 1st July 2023 | Minimum drawdown rates |
| Preservation age to 64 | 4% |
| 65 to 74 | 5% |
| 75 to 79 | 6% |
| 80 to 84 | 7% |
| 85 to 89 | 9% |
| 90 to 94 | 11% |
| 95 and over | 14% |
The drawdown minimum does not apply to managed investment drawdowns. It is only applied to superannuation income streams (i.e. Allocated Pension, Retirement Income Stream etc)
If you have any questions about your pension drawdowns please reach out to Robert or Troy via 03 5881 6005.
SGC contribution increased to 11%
From July 1 2023 the Superannuation Guarantee increased from 10.5% to 11%.
The government is on a trajectory to set the SGC rate at 12% by July 2025. To reach this goal, the SGC will increase by 0.5% each FY until it achieves 12% by July 2025.
If your business has employees, or hire eligible contractors, you will need to ensure your payroll and accounting systems are updated to reflect the new SGC rate from the first pay period of FY 2023/24.
Centrelink increase asset and income thresholds.
Starting July 1 2023, Centrelink have lowered the income and assets threshold for aged pensioners. This means more people will now qualify for a full Aged Pension and part Pensioners may receive an increase to their pension. The increase in the upper threshold means some people previously ineligible for the Aged Pension will now qualify.
If you think you may be eligible, reach out to Robert or Troy to discuss today.
