Yes. You will be able to choose the amount you take as an SABP or a TRIS each year subject to a minimum percentage drawdown of your account balance depending on your age as follows:
Default Minimum Pension
Reduced Minimum Pension Factor
for 2019/2020, 2020/2021 & 2021/2022 FYs
|65 - 74
|75 - 79
|80 - 84
|85 - 89
|90 - 94
|95 or more
***Note: The Government is temporarily reducing superannuation minimum withdrawal limits for Pensions by 50% for the 2019/2020, 2020/2021 and 2021/2022 Financial Years due to COVID-19 (novel coronavirus).
In the Pension Commencement Year the percentage to be taken is applied to the Commencement Value of the Pension in that year (prorated if the Pension commenced part way during the year). Importantly each Financial Year the Pension Balance is recalculated on 1 July and the percentage is applied to the new balance on that date to determine the minimum amount that must be drawn in the relevant year. There is no maximum Pension Withdrawal that you can take for a Simple Account Based Pension. There is a maximum Pension Withdrawal amount of 10% of your Pension Balance for a TRIS.
For example, assume your SMSF has total assets of $1,000,000. The SMSF has 2 Members, you and your Spouse. Your proportional ownership of the SMSF is 60% so your Super Benefit in the SMSF is $600,000. You decide to commence a Pension with your Super Benefit but your Spouse who has a balance in the SMSF of $400,000 does not commence a Pension as he/she is only aged 50.
Accordingly you apply to commence a Pension using the ESUPERFUND online Pension Application. You nominate a commencement date of 1 January 2022 and are 60 years of age at the date of the Pension commencement. In this case the minimum Pension you must take per annum is 2% (Default Minimum Pension Factor 4% reduced by 50% in the 2021/2022 FY) or $12,000. However given that the Pension is being commenced halfway during the year then only half of the minimum pension payment must be accessed before 30 June 2022, that is $6,000.
On 1 July 2022, assume that the SMSF assets have increased to $1,100,000. Your 60% proportional interest in the SMSF will in turn increase to $660,000. In this case the minimum pension amount will be recalculated for the following year ending 30 June 2023 to 4% of $660,000 or $26,400. This amount must be accessed before 30 June 2023. The recalculation will continue to occur 1 July each year.