For the 2026–27 financial year, the minimum pension drawdown rates for account-based pensions are unchanged from the prior year. The ATO’s official percentage table sets the factors as follows:
| Age on 1 July | Minimum drawdown percentage |
|---|---|
| Under 65 | 4% |
| 65–74 | 5% |
| 75–79 | 6% |
| 80–84 | 7% |
| 85–89 | 9% |
| 90–94 | 11% |
| 95+ | 14% |
Every fund or SMSF trustee must pay at least this amount to the member by 30 June 2026. Miss that date and the income stream may be treated as having ceased, with serious tax consequences.
Rounding rule: Round the calculated dollar amount to the nearest $10. Where the result ends in exactly $5, round up to the next $10.
Table of Contents
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What are the official minimum pension payment rates for 2026–27?
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Who calculates and pays the minimum: SMSFs versus APRA-regulated funds
What are the official minimum pension payment rates for 2026–27?
The percentages above apply to account-based pensions, allocated pensions, and most market-linked annuities that commenced on or after 20 September 2007. If your pension started before that date, different rules under Schedule 1A of the Superannuation Industry (Supervision) Regulations 1994 (SIS Regulations) may apply, so confirm with your fund or adviser.
The table applies to the member’s age at 1 July of the relevant financial year for ongoing pensions. For a pension that starts part-way through the year, the age at commencement is used instead, and the amount is pro-rated (covered in the next section).
A few practical points on payment frequency and rounding:
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Payments must be made at least once per financial year, though most members elect monthly or quarterly payments for cash-flow purposes.
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The minimum is calculated annually; you can spread it across as many payments as you like, provided the total reaches the threshold by 30 June.
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Round the final annual figure to the nearest $10. A result of $14,285 rounds to $14,290; a result of $14,285 where the last digit is exactly $5 rounds up to $14,290.
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Partial commutations (lump-sum withdrawals) do not count toward the minimum. Only regular income stream payments satisfy the obligation.
How do you calculate your minimum pension payment?
The formula is straightforward: minimum annual payment = account balance × percentage factor.
The balance used is the account balance at 1 July each year for an ongoing pension. For a pension starting mid-year, use the balance at commencement and apply a pro-rata fraction. The ATO’s income stream rules set out the exact mechanics.
Step-by-step for an ongoing pension
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Confirm the account balance as at 1 July 2025 (the start of the 2025–26 year feeds the 2025–26 minimum; the balance at 1 July 2026 feeds the 2026–27 minimum).
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Identify the member’s age on 1 July of the relevant year and look up the corresponding percentage from the table above.
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Multiply: balance × percentage factor.
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Round to the nearest $10 (exact $5 rounds up).
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Schedule payments so the total reaches or exceeds that figure before 30 June.
Step-by-step for a pension starting mid-year (pro-rata)
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Use the account balance at the commencement date.
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Use the member’s age at commencement to find the percentage factor.
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Count the days remaining in the financial year, including the commencement day itself.
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Apply the fraction: (days remaining ÷ 365, or 366 in a leap year).
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Minimum = balance × percentage factor × (days remaining ÷ 365 or 366).
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Round to the nearest $10.
One trap worth flagging: partial commutations made after 1 July 2017 do not count toward the minimum annual payment. A trustee who processes a lump-sum withdrawal and assumes it satisfies the pension obligation is making an error that can cost the fund its exempt current pension income (ECPI) status.
Pro Tip: Set a calendar reminder for mid-May each year to check whether the year-to-date pension payments are on track to meet the minimum. Leaving it until late June creates a scramble, particularly for SMSFs where the trustee must arrange the payment manually.
Worked examples and a simple calculator walkthrough
Ongoing-year example
A member turns 72 on 1 July 2026. Their account balance at 1 July 2026 is $620,000. The applicable rate for age 65–74 is 5%.
$620,000 × 5% = $31,000
Rounded to the nearest $10: $31,000 (already a round number, so no adjustment needed).
If the member receives monthly payments, each instalment would be approximately $2,583. The total across 12 months must reach at least $31,000 by 30 June 2027.
First-year pro-rata example
A member aged 68 commences an account-based pension on 1 October 2026. The account balance at commencement is $500,000. The applicable rate is 5%.
Days remaining in the 2026–27 financial year from 1 October 2026 to 30 June 2027, including 1 October: 273 days. The financial year 2026–27 is not a leap year, so the denominator is 365.
$500,000 × 5% × (273 ÷ 365) = $500,000 × 0.05 × 0.7479 = $18,699
Rounded to the nearest $10: $18,700.
Spreadsheet formula you can paste
In Excel or Google Sheets, with the balance in cell B2, the percentage factor (as a decimal) in B3, and days remaining in B4:
=ROUND((B2*B3*(B4/365))/10,0)*10
This rounds to the nearest $10 automatically. For an ongoing year (no pro-rata), simply remove the *(B4/365) portion.
The SuperGuide calculator lets you enter your balance, age, and pension start date and produces both the annual minimum and a monthly payment schedule. MoneySmart’s account-based pension page also links to tools for estimating income across retirement. Amberwealth’s own superannuation calculator can help model drawdown amounts alongside projected retirement income.
Who calculates and pays the minimum: SMSFs versus APRA-regulated funds
For members of large APRA-regulated funds, the fund’s administration team handles the calculation automatically, applies the correct percentage based on the member’s recorded date of birth, and schedules payments without the member needing to do anything. Many funds publish their product rules and minimum drawdown schedules openly. The way a large fund like AustralianSuper publishes and applies these rates illustrates how automated this process typically is for APRA-regulated members.
SMSF trustees carry the obligation themselves. The ATO’s newsroom reminder is direct: trustees must calculate the minimum, arrange the payment, and document the evidence. There is no automatic backstop.
SMSF trustee action checklist
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Calculate the minimum — Apply the member’s age-based percentage to the 1 July balance and round to the nearest $10.
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Report correctly — If an income stream ceases during the year (for example, due to a commutation), lodge a Transfer Balance Account Report (TBAR) event with the ATO. When a new income stream commences, revalue the account at commencement.
Pro Tip: SMSF trustees who hold illiquid assets (property, private equity) should confirm the fund has sufficient cash to meet the minimum pension payment well before June. Selling an asset in the last week of June to fund a pension payment is a compliance risk and a liquidity headache.
For SMSF and superannuation advice, Amberwealth works with trustees to set up compliant payment schedules and valuation processes before each 30 June deadline.
How do transition-to-retirement pensions differ?
Transition-to-retirement (TTR) pensions carry the same minimum drawdown percentages as account-based pensions, but they also have a 10% maximum while the pension remains in TTR phase. Once the member meets a full condition of release (typically retirement or turning 65), the pension converts to retirement phase and the 10% cap disappears.
The minimum for a TTR pension is calculated the same way: balance at 1 July multiplied by the age-based percentage. A member aged 60 in TTR phase with a $300,000 balance must draw at least $12,000 (4%) and no more than $30,000 (10%) in 2026–27.
Partial commutations from TTR pensions have their own rules. Since 1 July 2017, partial commutations from a TTR pension do not count toward the minimum annual payment. This catches some trustees off guard, particularly where a lump sum is taken to fund a large expense. The income stream payments themselves must still reach the minimum threshold independently.
Defined-benefit pensions operate under a separate set of rules under the SIS Regulations and generally require specialist advice. If your fund includes a defined-benefit component, confirm the applicable rules with your fund or a qualified adviser.
What happens if you miss the minimum pension payment?
Missing the minimum is not a minor administrative slip. Under the SIS Regulations, if a fund fails to pay the required minimum by 30 June, the income stream is treated as having ceased at the start of that financial year. The consequences flow from there.
The downstream effects include:
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Loss of tax-free status on pension payments for the year (they become taxable fund payments).
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Loss of ECPI, meaning the fund’s investment earnings for that year become taxable at 15%.
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Transfer balance account reporting consequences, since the income stream is treated as having ceased.
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The need to commute and restart the income stream, which may affect the member’s transfer balance cap space.
If you suspect a breach has occurred, contact the ATO or speak with an adviser immediately. The ATO does have a process for considering whether a shortfall was due to an honest mistake, but there is no guarantee of relief, and the longer the delay in addressing it, the fewer options are available.
Practical checklist: what to do before 30 June 2027
Work through this list in the weeks leading up to 30 June each year.
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Confirm your account balance at 1 July 2026 — For APRA funds, check your member statement or online portal. For SMSFs, obtain or confirm the fund’s asset valuations as at 1 July.
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Report any TBAR events — If an income stream commenced or ceased during the year, lodge the relevant Transfer Balance Account Report with the ATO.
How Amberwealth can help with drawdown planning
Amberwealth helps clients calculate minimum drawdowns, model spending strategies, and keep SMSF pensions compliant before each 30 June deadline. For retirees managing an SMSF or a complex pension structure, the calculation is only part of the picture. The bigger question is whether the minimum is the right amount to draw, given your cash-flow needs, Age Pension eligibility, and long-term retirement income plan.
Specific services relevant to drawdown planning include:
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Retirement income planning: Modelling how much to draw each year across your full retirement, accounting for longevity, sequencing risk, and spending patterns. Amberwealth’s retirement planning advice covers this in full.
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Age Pension strategy: Understanding how drawdown amounts interact with the income and assets tests, and whether drawing above the minimum could affect your entitlement. See Amberwealth’s Age Pension strategies service for more.
For a first meeting, bring your most recent superannuation statements, your pension commencement date, and any correspondence from your fund about your current payment schedule. That gives an adviser everything needed to confirm your minimum, model your options, and flag any compliance gaps before they become problems.
Key takeaways
The 2026–27 minimum pension drawdown rates are set at normal levels, with no temporary reduction in place. Every account-based pension must pay the minimum by 30 June or risk losing its income stream status.
| Point | Details |
|---|---|
| 2026–27 rates are standard | No temporary reduction applies; rates range from 4% (under 65) to 14% (95+). |
| 30 June is the hard deadline | Payments must clear the fund’s account by 30 June each year, not merely be initiated. |
| Pro-rata applies in year one | For pensions starting mid-year, multiply the full-year minimum by days remaining ÷ 365 (or 366). |
| Commutations don’t count | Partial lump-sum withdrawals after 1 July 2017 do not satisfy the minimum pension obligation. |
| Amberwealth can review your position | Amberwealth provides drawdown calculations, SMSF compliance support, and retirement income modelling across Victoria, New South Wales, South Australia, and Tasmania. |
The minimum is a floor, not a plan
There is a version of retirement planning that treats the statutory minimum as the answer to “how much should I draw?” It is not. The minimum is a compliance requirement, set by the SIS Regulations to prevent superannuation from being used purely as a tax shelter in perpetuity. It was never designed to reflect what a retiree actually needs to live on, or what makes sense given their specific financial position.
The gap between the minimum and a sensible drawdown strategy is where most of the real planning work happens. A 68-year-old drawing 5% on a $600,000 balance takes $30,000 a year. Whether that is too much, too little, or roughly right depends on their other income sources, their spending pattern, their Age Pension eligibility, and how long they expect to need the money. None of those variables appear in the ATO’s table.
Two things practitioners see repeatedly: retirees who draw only the minimum because it feels “safe,” and end up with a large balance late in life that they never spend; and retirees who draw heavily early, sequence into a market downturn, and find the balance depleted faster than expected. Both outcomes are avoidable with a proper retirement income strategy that models cash flow across the full retirement period.
The interaction with the Age Pension is also underestimated. Drawing above the minimum can reduce Age Pension entitlements through the income test, but it can also reduce the assessable asset base over time, which eventually increases entitlements. The optimal drawdown rate is rarely the minimum, and rarely obvious without modelling.
My view: treat the minimum calculation as a compliance task you complete in May each year, then spend the real planning time on the question the ATO table cannot answer: what is the right amount for you to draw, given everything else in your financial life?
Ready to get your drawdown right this financial year?
Calculating the minimum is one thing. Building a retirement income plan that actually works for your life is another.
Amberwealth works with retirees and SMSF trustees across Victoria, New South Wales, South Australia, and Tasmania to calculate compliant minimum drawdowns, model income across retirement, and make sure the numbers hold up against the Age Pension, transfer balance cap, and tax rules. A drawdown review typically takes one meeting and covers your current pension structure, the minimum for 2026–27, and whether your payment schedule is set up correctly.
To book a retirement income review, visit Amberwealth’s retirement planning page or use the superannuation calculator to get a preliminary estimate before your first conversation. Bring your most recent super statement, your pension commencement date, and any SMSF trustee minutes relating to pension payments. That is all an adviser needs to confirm your position and identify any gaps before 30 June.
Authoritative sources and helpful calculators
Use these resources to verify rates, run estimates, and stay current with any legislative changes:
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Payments from super
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Income stream (pension) rules and payments
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Deadline for minimum pension drawdown | Australian Taxation Office
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Account-based pensions | MoneySmart
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Minimum pension drawdown rates (2026–27) and calculator
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Minimum Drawdown Rates by Age: What You Must Take From Super Pension | SuperCalc Pro
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Minimum drawdown rates | AustralianSuper
When checking any of these sources, save a PDF or screenshot of the page showing the rates and the date you accessed it. If your fund or auditor ever questions your calculation, that record demonstrates you used the correct figures at the time.
This article provides general information about superannuation pension drawdown rules and is not personal financial or tax advice. Rates, rules, and thresholds can change. Confirm your specific obligations with the ATO, your fund, or a qualified financial adviser before acting.
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