Innholdsfortegnelse for July 2023 i Money Magazine

BACK TO BASICS Serbia Bird This year is turning out to be difficult for many people. I wish I could provide good news, but following several interest rate rises and record high inflation, the outlook isn't great. While Christmas in July is a thing, it's important to start preparing now for Christmas in December. I know it's still almost six months away, but whether it's of religious significance to you or not, invariably you will spend more money around Christmas. Not only is it a time for feasting, celebrating and family, it's also the beginning of holidays and leads into the start of the school year. In 2022, Australians spent a record $74.5 billion – despite tougher economic times – and it's easy to get caught up in the spending…

Our superannuation system is one of the best in the world, but it's undermined when gig workers aren't getting it. Extending it to workers such as rideshare and food delivery drivers and riders is better for everyone. As well as providing those workers with a better future in retirement, it's the right thing to do for the national economy because it eases the pressure on future government budgets across health, aged care and social security. TWUSUPER wants the federal government's gig economy reforms to ensure on-demand transport workers have access to conditions, including superannuation, on par with other transport workers and the population as a whole. McKell Institute research has shown that 81% of on-demand transport workers need the job to pay bills and fund their retirement and 45% of…

►MORE MONEY STORIES ON P44-57 SPENDING Almost half (47%) of Aussies say they will have done more than 50% of their shopping online this year, according to parcel delivery service CouriersPlease. It surveyed 1005 adults who have made at least three online purchases in the past three months. Three-quarters (73%) will have done at least 30% of their shopping online this year. The trend towards shopping online is strengthened by the ability to compare products and prices to get the best deal. While bricks-and-mortar stores have made a comeback since Covid lockdowns, online habits appear here to stay. Richard Thame, chief executive of CouriersPlease, says the results come as little surprise. “We delivered more than 30 million parcels across Australia and internationally last year, up two million from delivery figures…

ASK PAUL Q & A NEED PAUL'S HELP? Send your questions to: Ask Paul, Money magazine, Level 7,55 Clarence Street, Sydney NSW 2000 or money@moneymag.com.au. Sorry, but Paul can't personally answer your questions other than in the Q&A column. By submitting your question to Money, you consent to having your question and the response you receive from Paul published in the print and digital edition of Money. QI owe about $800,000 on my mortgage, currently Axed at 3%. It comes off the fixed rate in October. Should I refix now or wait and see how the Reserve Bank moves next? Our budget is tight, and I'm not sure how many more interest rate increases we can bear. This is really stretching my very flawed crystal ball, Jonathan. As you know,…

Q I bought a property in the country in 2001 and built a shed, which I lived in until last year. I didn't think it would be sensible to build a house at the time and I was broke. Two years ago, I saved up and bought a place in Melbourne, and now live there. I still have my country place and I'd like to know if I can put $300,000 into my super as a downsizer contribution when I sell it? I'd be so grateful if you could tell me “yes” or “no”. I don't have much super. Thank you! Well, Kathleen, I can give you an absolute “no”, but not an absolute “yes”. Let's look at the “no”. For a downsizer contribution, you must have reached the eligible…

What is it? “Drive Against Depression started from our personal experience with mental health,” says Sarah Davis, who founded the organisation with her husband Adam. When Adam's depression recurred in 2017, he sought treatment including medication and counselling. But it was a weekend drive with mates that sparked something in Adam, and Drive Against Depression was born. ‘We noticed this big improvement in his mental wellbeing from doing something he loves with a mate and connecting,” Sarah tells Money. Staffed by volunteers, Drive Against Depression hosts four main drives a year in Melbourne, and recently held its first Sydney event. Events start with a briefing, a talk from a mental health practitioner, a scenic drive along a set route, morning tea, a second drive leg, then a group lunch. “It's…

Clarice Briggs's 74-year-old father, Bob, has been scammed multiple times online. The retired senior executive has been the smart one his whole life: top of his class and highly regarded in his field. Soon after retirement, Bob's wife (Clarice's mother) became ill and passed away. Devastated, Bob found himself grieving the loss of his professional identity and his wife. “Dad was lonely and grieving, and he had poor digital literacy, making him vulnerable,” says Clarice. When he got an email offering classes on how to invest in bitcoin, it tickled Bob's curiosity and reinforced his belief he was good with money. “It made him feel purposeful and in control again,” says Clarice. The website looked impressive, but ultimately it was a scam that cost Bob half a million dollars over…

BANKING Michelle Baltazar In a world that thrives on speed and instant gratification, it may seem counterintuitive to argue for slower banking processes. However, there is a case to be made for applying the breaks: it might just stop people from sinking further into debt or getting scammed. Young savers are raving about “cash stuffing” or the “cash envelope system” as a means to saving more money. Rather than pay their bills or expenses through their bank, a new generation of savers is withdrawing thousands of dollars from the ATM and putting $5, $10, $20 and $50 notes into envelopes for each expense item. For example, if someone who gets a weekly salary knows that a $180 bill is due in three months, each week they “deposit” $15 into an…

When my son bought his secondhand dual-cab 4WD, it was love at first sight. He set about tinkering with electronics and all manner of things to spruce up his perfect car, aptly brandishing a large “Built not Bought” sticker on the front – a not too subtle poke at some of his friends who had spent more on a car, but whom the tribe had deemed less authentic and cool. That car was more than simply a mode of transport; it was a core part of his identity. Great adventures were had camping on beaches, tearing up clifflike mud tracks and day-tripping with his mates wherever and whenever they wanted. It was love. It was freedom. It was happiness. However, as the years passed, his university degree started to soak…

Inheriting a property may sound like a dream come true, but if you don't handle your affairs correctly you could face a sizable capital gains tax bill further down the track. While you won't need to pay CGT at the time you inherit the property from a deceased estate, there's certainly a possibility you'll trigger a liability when you sell it. In a worst-case scenario, you inherit a home that had always been used as an investment property and you continue to use it that way. You sell it seven years after it passed to you and in that time the value of the property has increased by $700,000, representing a capital gain. Because you've owned it for more than 12 months, you're entitled to a 50% discount, but it…

When you apply for your home loan, you'll probably hear about whizz-bang features such as offset accounts. They are like bank accounts, except they're attached to your mortgage. The general premise is that instead of earning interest on your savings – and paying tax on it – you get a reduction on the interest charges on your mortgage. For instance, say that you have $20,000 sitting in your offset account rather than in a savings account. That $20,000 is equivalent to 6% tax free (assuming you're reducing your $600,000 mortgage by $20,000 at 6%). Depending on your savings account, you might otherwise earn 4% interest (in many cases less). You would also pay tax on that interest as it is an investment. Using an offset account is convenient because, although…

MANAGED FUNDS Max Riaz The burden of an ageing demographic has far-reaching consequences. It impacts the supply of labour and inflation, and brings with it lower economic growth, fiscal instability of government budgets – leading to forever more government borrowing and risks to credit ratings – and weaker geopolitical influence. These consequences need to be considered when allocating capital to different markets in investment portfolios. The great industrial powers of Germany, Japan and China face significant demographic challenges characterised by low birth rates, declining populations and rapidly ageing societies. China's population, for example, is both ageing and decreasing, with projections of a decrease by 48 million, or around 2.7%, between 2019 and 2050. Additionally, according to the United Nations World Population Prospects, by 2050 each of these countries is projected…

THIS MONTH Marcus Padley I once gave a presentation at a home buyer's show. My talk was on which asset class is the best, property or shares, and in my preparations I discovered that both asset classes return 6% to 10% over the long term and, depending on your chosen time period, one or other will win but no one takes the trophy at all times. I started out looking for the differences, but what I noticed where the similarities. The two asset classes have very similar marketing. They are both playing a game with you. Here are some of the parallels: • Both asset classes simply want you to buy something. Never sell something. • Both industries rely on the image of a perpetual bull market. • Both industries…

“I never give up hope for a better tomorrow” Do you recall your earliest money lesson? I have two strong early memories. The first one was from my parents, and it was the importance of giving back where you can and supporting others. The second was in Year 7 of high school during social studies class. It was the first time I had heard about “hire purchase”, “consumer leases” and “rent to buy”. I recall being horrified at how expensive a fridge under finance could become and curious as to what was happening in a person's life to use these products. What was the first thing you remember saving up for? I was a terrible saver when I was young and a great spender on clothes and holidays. The first…

Working out to the voice of reason I enjoyed the podcast with the warm and down-to-earth Michelle Baltazar and Paul Clitheroe, where I heard Paul's voice for the first time! (See podcast pointer below) I've been a fan of his and have read his advice closely for around two decades; his writing is usually fun to read and easy to understand, at the same time, a great bonus. My only suggestion is that it would have been helpful for Michelle to have briefly summarised the five rules of money given by Paul, before she wrapped up the podcast. That way, they could more easily have stuck in the minds of listeners. Thanks for an enjoyable format (it lets me do 20 minutes of floor exercises as I listen). Stella Listen…

CALENDAR OF EVENTS Tuesday, July 4 RBA interest rate decision Thursday, July 6 Balance of trade Tuesday, July 11 Westpac consumer confidence NAB business confidence Thursday, July 20 Unemployment rate Wednesday, July 26 Inflation rate THE BUZZ While many are hunting for bargains right now, a good many of us are regretting making bargain purchases. Insurance provider AAMI's Bargain Regret Report shows nine out of 10 Australians are seeking out bargains in an attempt to save money, but many are suffering from “bargain regret”. The findings are from a survey of 2003 people aged between 18 and 55, conducted between September 2022 and March 2023. The most popular “bargains” are clothing (66%), home décor (57.2%) and shoes (54%). But 96% of people regretted purchasing an item, with severe cases spending…

BOOK OF THE MONTH Research shows that 85% of Australians haven't yet used innovative Al tool ChatGPT, but many have discovered how useful it is for completing certain tasks. In this handbook, the author explains how you can benefit from using ChatGPT in your everyday life, from writing emails to planning meals and organising holidays. Think of it as your virtual assistant. You'll wonder how you ever lived without it. Five readers can win a copy In 25 words or less, tell us how you think ChatGPT could help you in your work, studies or personal life. Enter online at moneymag.com.au/win or send entries to Money, Level 7, 55 Clarence Street, Sydney, NSW, 2000. Entries open July, 3 2023 and close August 2, 2023. TAX TIP How to claim deductions…

To contend with rising living costs, Australians are cashing in on loyalty programs by redeeming rewards points for cash or supermarket gift cards. Research from NAB shows a significant shift in consumer behaviour over the past 12 months, with more people preferencing cash over merchandise when it comes to redeeming rewards points. “As living costs rise, Australians are getting even closer to their finances and thinking about where they can squeeze maximum value out of the loyalty programs they have in their wallet,” says NAB personal banking executive Kylie Young. “We're seeing a big shift in customers using rewards points to cover their groceries and essential purchases rather than treat themselves to a new espresso machine or hair straightener.” After cash, Aussies are also redeeming rewards points for gift cards…

The Intelligent Investor Graham Witcomb One of Australia's best businesses, CSL, suffered a share price fall after management reduced its forecast for full-year profits. Unfavourable currency movements over the past few months have caused the $US175 million ($255 million) headwind predicted at February's interim result to balloon to $US230 million$US250 million. The troublemaker appears to be CSL's Behring division, where around 50% of sales occur outside the US (most costs are incurred inside the US). That mismatch, plus a long manufacturing cycle, has caused a margin squeeze as the US dollar has strengthened. Excluding the currency effects, however, management's forecast for underlying net profit is unchanged, so we aren't worried. Unfortunately, management added a second helping of bad news: high donor payments are unlikely to ever return to prepandemic levels…

Q How often does my employer need to pay my superannuation? I am on a temporary visa and my work has not paid my superannuation since early last year. I don't want to cause trouble for anyone, but my Australian friends say my boss really should be paying my superannuation. Thank you. Yow, this is not good, Binh. In fact, it is totally outrageous. Super must be paid every three months into the employee's nominated account. From 2026 this will be every payday. There is absolutely no excuse your employer can use not to pay your super. I appreciate that you are on a temporary visa, but it concerns me your employer may be using this as an opportunity to not pay your super. Your employer is liable to pay…

Looking for something to surprise your friends? Domaine Simha is a tiny production Tasmanian label expressing the personality of Nav Singh and Louise Radman and Tassie's multi-faceted terroir. The wines are difficult to obtain but worth the effort and show clearly what the fuss is about with Tassie wines. This youthful pinot is complex and very fine with satiny texture, delicate yet with wonderful depth of flavour and incredible length. Worth the hunt, PETER FORRESTAL…

PAUL'S VERDICT Paul Clitheroe YOUR QUESTION First, thank you for the advice over the years. I've been reading Money since it started. I'm writing to share my experiences with the highly publicised mortgage refinance cliff we are all currently dealing with. Do I have a dud broker or are the standard assessment criteria absolutely ridiculous? What's the standard acceptable shadowing rate for rental income? I'm married and in my mid-30s. We have no dependants, but hopefully this will change in the future. I'm trying to refinance $636,000 in investment home loans (currently 6.5% principal and interest). The three properties used as security for this home loan debt are all within 50km of Melbourne. All properties are rented. I'm employed, long term and full time, earning $93,000. My wife earns almost twice…

We have three prizes up for grabs. For your chance to win, tell us in 25 words or less why you'd like one of the Mophie tech products (pictured below). Enter online at moneymag.com.au/win or send entries to Money, Level 7, 55 Clarence Street, Sydney NSW 2000. Entries open July 3, 2023 and close on August 2, 2023. PLUS The three lucky winners will also each receive a free 12-month subscription to Money magazine.…

Australian Communications and Media Authority 1300 850 115 acma.gov.au Australian Competition and Consumer Commission 1300 302 502 accc.gov.au Australian Energy Regulator aer.gov.au/consumers/making-a-complaint Australian Financial Complaints Authority 1800 931 678 afca.org.au Australian Securities and Investments Commission (ASIC) 1300 300 630 asic.gov.au Australian Securities Exchange (ASX) 131 279 asx.com.au Association of Superannuation Funds of Australia (ASFA) 1800 812 798 (outside Sydney) 9264 9300 (Sydney) superannuation.asn.au CPA Australia 1300 737 373 (within Australia) +61 3 9606 9677 (outside Australia) cpaaustralia.com.au Do Not Call Register To reduce telemarketing calls 1300 792 958 donotcall.gov.au/contact-us/contact-details Fair trading/consumer affairs ACT: 132 281 NSW: 133 220 NT: 1800 019 319 QLD: 137 468 SA: 131 882 TAS: 1300 654 499 VIC: 1300 558 181 WA: 1300 304 054 Financial Counselling Australia National Debt Helpline: 1800 007 007 financialcounsellingaustralia.org.au/contact…

Anthony O'Brien SMALL BUSINESS Rising utility bills are putting profits under pressure for more than one in three (36%) small businesses, according to a 2023 survey by MYOB, the accounting software provider. So, when the federal budget included energy savings of up to $650 for eligible small businesses from July 2023, their owners undoubtedly breathed a sigh of relief. As is often the case, though, the devil is in the detail. The key words are “eligible” and “up to”. The reality is that not every small business will share in the spoils. The government will chip in $325 towards power bill relief for each small business nationally. But the savings could be far higher depending on your location. In NSW, Queensland, Western Australia, South Australia, Tasmania and the Northern Territory,…

Every morning, start the day by listing three things you are grateful for. Try to avoid common things like “my kids” or “I live in a great country”. Be specific and attentive to things that are often overlooked. This could include gratitude for people who've made a positive difference in your life, a new opportunity that you have today or something simple in your immediate line of sight. At the end of any formal meeting or in-depth conversation, make a point of thanking the other person for a specific new insight or knowledge they have just given you. This will help you see people for who they are, rather than what they own or do, and will also make the other person feel valued. Learn to articulate out loud what…

If you are a foreign resident or the deceased was a foreign resident, you are generally not entitled to the main residence exemption when you sell the property. • The ATO gives the following example of inheriting property from a foreign resident: Michael bought an Australian residential property in 2010 and lived in it as his main residence until July 2013, when he moved overseas and rented it out. He died in August 2021 and Anita, an Australian resident, inherited the property from Michael. Anita did not live in the property and sold it within two years. At the time of his death, Michael had been a foreign resident for more than six years, meaning he was not eligible for the main residence exemption, despite having lived in the property…

SUPER Vita Palestrant The minimum drawdown rate for super members with an account-based pension will return to normal in the new financial year. The minimum was temporarily halved four years ago to shield members’ super balances from falling markets and pandemic-induced uncertainty. If you are between 65 and 74, your annual pension rate will go from 2.5% to 5% on July 1 (see table). The drawdown rate also increases as you get older. For instance, if you are 95 or older, the minimum is 14%. Fortunately, super funds take care of these changes and update their members accordingly, either by email or letter. They will also ask whether you want to alter the payments to withdraw more. Funds calculate your minimum drawdown amount each year based on your super balance…

The Betashares ETF aims to track an index that comprises 40 high-quality Australian companies. The index selects Australian companies based on “quality” metrics of high return on equity, low leverage and relative earnings stability. Nasdaq-100 ETF (ASX: NDQ) NDQ, also from Betashares, aims to track the performance of an index that comprises 100 of the largest non-financial companies listed on the Nasdaq market in the US, including many companies that are at the forefront of the new economy. India Nifty 50 ETF (ASX: NDIA) NDIA offers access to 50 of the largest and most liquid publicly traded companies in India, spanning a range of economic sectors.…

BEST IN BREED Scott Phillips For the first time since 2020, Covid is not the story of the year; for investors or for the world at large. To be sure, it seems as if we're stuck with a new endemic virus. And healthcare professionals seem nowhere near as blasé as the rest of us, on average, have become. But, thanks to competing priorities and short attention spans, our society has largely moved on. And yet, the experience of, and response to, Covid has been profound – as a society, but also for healthcare. The very idea of mRNA-based vaccines, for so long a dream with an unknown timeline, became real – and really useful – in 2021. And most of us learned more than we ever thought we would about…

Alex Dunnin OUTLOOK The Minerals Council of Australia (MCA) is running a national multimedia advertising campaign proclaiming that Australia's minerals industry is the nation's fiscal salvation because it's paying record company tax and royalties. “In 2021-22, [Australia's minerals industry contributed] $63 billion to federal, state and territory governments, an increase of $21 billion on the previous year. That total contribution is the equivalent of paying for the entire Medicare scheme or the childcare subsidy for two years,” it boldly states in its media release. The clincher line says the minerals sector pays a third of all company tax paid in Australia, meaning “the minerals industry is clearly paying its fair share of tax”. Maybe. The minerals industry is, without doubt, an Australian and global success story, and if Australia wants…

STEPHANIE ANTONIS Executive director, media sales “I have found that freezing my gym membership periodically has been a great way to cost save without impacting my lifestyle. I have travelled fairly extensively over the past 12 months, and it makes sense to pause paid recreational activities, such as my Fitness First club pass, when I am in London. I also pause it during the hot summer months when I spend the majority of my time swimming laps outdoors for exercise.” SHARYN MCCOWEN Digital editor “I've done a bit of everything: cancelled a streaming service, negotiated a $1025 refund from a tradie for unfinished work, scored $50 in cashback rewards through my bank, and traded in two old iPhones for cash. I've also sold a couple of hundred dollars’ worth of…

Financial Counselling Australia welcomes the federal government's move to increase consumer safeguards for buy now, pay later (BNPL), but wants to ensure the new laws go far enough. BNPL credit can be great for some people, but it also causes great harm. Too many people have BNPL credit they struggle to pay, with many using it for essentials like food and utilities. We know there will be a new category in the Credit Act for BNPL that will require providers to comply with “modified” responsible lending obligations, but it's unclear what these will be. And if BNPL providers aren't required to report BNPL limits through the credit reporting system, problems of overcommitment through multiple accounts will continue. It is positive, however, that the new laws will prevent automatic credit limit…

FRIENDS WITH MONEY #101: BUILDING A STOCK PORTFOLIO Guest: Tim Wallace Host: Tom Watson Taking the leap into the investment world can be a daunting experience for most and we could all benefit from some sound words of advice before getting started. On this episode of Friends With Money senior journalist Tom Watson chats to Tim Wallace, general manager and country head of investment platform Syfe Australia. They'll take you back to basics as they dive into the fundamentals of building a portfolio of shares, exchange traded funds and other assets. Happy investing. SCAM THIS CODE TO ACCESS ALL OLTR FRIENDS WITH MONEY PODCASTS…

►MORE PROPERTY STORIES ON P58-65 HOUSING It may not seem that way to anyone searching for one, but the number of available rentals has increased for the first time since December 2022, according to Domain. After four consecutive months of remaining steady, Domain's May rental vacancy rate report reveals that the national percentage of available rentals has increased to 0.9%. While Australia is still considered a “landlords’ market”, the monthly increase suggests conditions are beginning to marginally improve for tenants. “It remains a challenging and competitive environment for tenants, but the recent performance of vacancy rates shows conditions have stabilised for now,” says Nicola Powell, Domain's chief of research and economics. The steady increase in housing supply across most capital cities can be attributed to some tenants reverting to share…

With inflation slowly easing back from the decade highs experienced at the end of 2022, asset management firm Schraders predicts a positive turnaround for bonds. In fact, it says fixed income could end up as a standout performer for 2023 compared with other asset classes. “Although the surge of inflation in 2022 rose to levels not seen since the early 1980s, with the resulting negative impact on the bond market, there is now reason to be optimistic about the outlook for the fixed-income asset class,” Stuart Dear, the head of fixed income at Schraders Australia, says in a press release. “As well as the material possibility of high-quality fixed income delivering strong returns this year, partly erasing last year's losses, it should also be a good diversifier as we enter…

ASK PAUL Q & A Q I'm 23 years old and in a very privileged position. I bought an investment property in Queensland last year and currently live at home with my parents in Sydney, where I am fortunate to pay only $50 a week in rent. My income is $95,000 a year, with rental income of about $33,000 and about $2000 from investment returns. My father is always at me to pay down my loan in order to get more equity in my property. However, I can't help but think I am losing out on my opportunity in the sharemarket. I allocate $1000 a month to shares, and was wondering if I should follow my father's advice or keep investing that $1000 a month. I also have an offset…

SMART TECH Meet the new arrivals in the Pixel family It might not attract the same level of fervour as some other tech galas, but Google's annual I/O conference has become a mainstay of the tech calendar, with the search giant invariably unveiling a swathe of new products and initiatives worth paying attention to. This year, Google showed off oodles of new Al features – all of which look impressive in their own way – but the consensus remains that Google is still playing catch-up to OpenAI's trailblazing ChatGPT. For many, though, the most exciting part of Google I/O isn't the software and cloud innovations, but seeing Google's new hardware goodies. On that score, this year didn't disappoint, with the company showing off new smartphones and finally releasing its long-teased…

Thank you for your kind words, Ryan. My TV show Money ran on Channel Nine throughout the 1990s and into the 2000s. We started Money magazine in 1999 and it delights us all to hear from our long-standing viewers, readers and radio listeners. Seeking to own and pay off a home has been one of my strongest mantras ever since the first Money TV show. It certainly is not an Albert Einstein quality thought, nor is it vaguely original. I recall my grandparents telling me to do that! But where I hope Money has helped a little is to take this message into people's lives and keep on repeating it. One of my first stories, back in 1993, was the value of adding a minimum $1 or more a day…

What is an eSIM? A digital SIM card that can be downloaded and used in the same way as a physical SIM card. Are eSIMs compatible with all phones? No, although most top-tier smartphone models released by Apple, Google and Samsung in recent years will support eSIMs. Where can you get one? Many international telcos now provide eSIMs, but WhistleOut's Alex Choros also recommends specialist online stores such as Airalo. How much do they cost? As with physical SIMs, prices will differ depending on the destination, the length of the plan and features, including data allowance.…

FAMILY MONEY Susan Hely As a single parent to six-year-old Luna, Sheridan Rowe says her life is a fine balance between working as much as she can to pay the bills and finding some space so she can be a decent parent. Single parents typically reduce their working hours and income to care for their children. At the same time, they bear many – or all – of the costs of running a home, such as rent or mortgage, home and contents insurance, transport, medical bills and childcare. “Everything is on you,” says Rowe, who doesn't receive any financial support from Luna's father. It's a similar story tor Sarah King, single mother of two-year-old Amelia, who says doing everything on your own can lead to burnout. “It's a snowball effect,”…

The soaring cost of living continues to see families trimming their budget. But it's important through these difficult times to ensure that cutting corners now does not cost you significantly more down the track, or is detrimental to retaining the value in your property. Improvement projects are essential and go hand in hand with home ownership. And vital maintenance should not be overlooked despite the financial challenges. It is important to remember that home improvement plays a pivotal role in ensuring your living experience is enjoyable. Property prices remain high, and this alone highlights why improvement projects should be high on the family agenda, as they significantly increase the value of your home and your equity in it. You never know when your plans may change, and if a home…

It's important to take into account that a lump sum withdrawal doesn't count towards your minimum pension payments, warns Craig Sankey, from Industry Fund Services. “Let's say you are drawing out $10,000 but your minimum drawdown is $20,000. That $10,000 doesn't count towards your $20,000 minimum. Someone can't just do a lump sum and think they've met their minimum requirements. They need to be aware of that. “They are treated separately under the superannuation rules,” he says. Lump sums are treated as lump sums and income payments are treated as income payments. Minimum drawdowns are only based on income drawdowns; they're not based on lump sum withdrawals.” When you nominate how often you want your income payments to be made, it can be anything from twice a month, monthly, quarterly…