Drawdowns and deeming - now they must be fixed

The $1.6 million super cap will not help already challenging deeming and minimum withdrawal rules.

Summary: The proposed $1.6 million limit on tax-free superannuation accounts in pension mode should make the government think about modifying minimum withdrawals from super accounts, as the limit will already create a disincentive to use super as a wealth accumulation vehicle. Deeming rates should also be reviewed in the current low interest environment, as the income that is ‘deemed’ to be generated from many cash investments might be higher than the reality.

Key take out: In this environment of low share market returns and a low cash rate, reviewing the deeming rules and minimum withdrawal requirements would be more fair to superannuation accountholders.


{{ twilioFailed ? 'SMS Code Failed to Send…' : 'SMS Code Sent…' }}

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device

Verify your mobile number to unlock a FREE trial

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa

The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device

Register as a new member

(using a different email)

Related Articles