Federal Budget at a Glance

While the Federal Budget announced on 12 May 2009 was designed to ease the impact of recession and limit further unemployment, it also had significant implications for retirees and those approaching retirement.

Here we outline some of the Budget highlights* that may affect your retirement plans.

Minimum drawdown reduction extended

The 50% reduction in the minimum drawdown requirement for account based, allocated and term allocated pensions will continue for the 2009/10 financial year. Retirees looking for tax-free earnings on their retirement savings may now find these pensions a more attractive option.

Concessional contribution limit reduced

If you’re aged 50 or above, from 1 July 2009…