Federal Government announces assistance for members and retirees

23 March 2020

On 22 March 2020, the Prime Minister announced a number of changes to assist members and retirees financially affected by the COVID-19 pandemic.

 

Early release of super for members in financial distress

Members who meet the eligibility criteria can access up to $10,000 of their superannuation before 1 July 2020. Members may additionally be able to access up to a further $10,000 from 1 July 2020 for a short period in the 2020/2021 financial year.

These monies are being made available for members significantly affected financially by the COVID-19 pandemic, with no tax payable on the released funds.

You will need to apply online through MyGov and the ATO will assess your eligibility. If you are eligible, the ATO will advise us to release the money to you.

Some details including the eligibility criteria and how to apply are included in this Treasury fact sheet.

It's important that you carefully consider the impact on your retirement savings before withdrawing from your super. If you would like to speak with a financial planner, you can request a phone appointment here.

Please note that these proposed changes are not yet in effect. However, we anticipate that these changes will be passed through legislation this week, with the Federal Government proposing a start date of mid-April.

Reduction of the minimum drawdown rate for account-based pensions

The Federal Government has reduced the minimum drawdown rate for account-based pensions by 50% for the current financial year and for the 2020/21 financial year.

We are currently awaiting information on when and how these reduced drawdown rates will be implemented. We will advise all of our account-based pension plan members about their options as soon as possible.

All the details of the amended aged-based rates are in this Treasury fact sheet.

Further reduction of the social security deeming rates

There has been a further reduction of the social security deeming rates of 0.25%. This is in addition to the 0.5% reduction announced on 12 March.

The upper deeming rate will be 2.25% and lower rate will be 0.25%. The new rates will be effective from 1 May 2020.

All the details are in this Treasury fact sheet.

How you can contact us and manage your super

The information on this website is of a general nature only and does not take into account your personal objectives, situation or needs. You should consider obtaining professional financial, taxation and or legal advice tailored to your personal circumstances prior to making any financial decision.