What is the minimum SMSF pension I must draw?

It's a percentage of your 1 July account balance, set by age. Under 65 it's 4%, 65–74 is 5%, 75–79 is 6%, 80–84 is 7%, 85–89 is 9%, 90–94 is 11%, and 95+ is 14%.

What happens if I miss the minimum pension?

The pension is deemed to have ceased on 1 July of that financial year. All earnings on those assets become taxable (15%) for the whole year and the fund loses its exempt current pension income exemption.

Is the minimum pro-rated in the first year?

Yes. If you start your pension partway through the year, the minimum is pro-rated based on days remaining. If you commence in June, no minimum is payable that year.

Can I take more than the minimum?

Yes. There is no maximum on account-based pensions — you can withdraw any amount above the minimum, and lump-sum withdrawals from accumulation phase remain available too.

How is the minimum calculated each year?

On the member's account balance as at 1 July, multiplied by the age-based factor. easySMSF runs this for you each July and confirms the figure before payments commence.

SMSF in retirement

SMSF minimum pension drawdown rates

By Tim Roff, Founder & SMSF Specialist · Updated 29 June 2026

Once your SMSF is in pension phase, the law requires a minimum payment to you each financial year — calculated as a percentage of your account balance at 1 July.

EOFY Special — 50% off SMSF setup

Offer ends midnight AEST, 1 July 2026. Applies to Individual and Corporate Trustee setup fees.

00Days

00Hrs

00Min

00Sec

2025–26 minimum drawdown table

The minimum is set by your age on 1 July (or pension commencement date). The percentages step up as you age, recognising that retirement savings should be drawn down over time rather than left to accumulate as an inheritance vehicle.

Missing the minimum is the most expensive trustee mistake. If you fall short by even $1, the ATO treats the pension as having stopped on 1 July — meaning the assets supporting it are taxed at 15% for the full year and the exempt current pension income exemption is lost.

easySMSF calculates your minimum each July, sends you a payment reminder, and reports the events to the ATO via TBAR. You stay compliant without thinking about it.

Under 65: 4% of 1 July balance
65–74: 5%
75–79: 6%
80–84: 7%
85–89: 9%
90–94: 11%
95+: 14%
Pro-rated in the first year (no minimum if started in June)

Frequently asked questions

Ready to set up your SMSF?

Fixed monthly fee, audit included, fully paperless.