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Important updates to the early release of super measure

Written and accurate as at: Apr 01, 2020 Current Stats & Facts
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There are new Government super provisions designed to help Australians who are under financial stress as a result of the Coronavirus. These became law last week and we now have more details about how you can apply.

 

  

 

Important updates to the early release of super measure

What is the early release measure?

The Government is allowing eligible Australians to apply to withdraw up to:

  • $10,000 of their superannuation in the financial year 2019-20 (before 1 July 2020), and
  • Up to a further $10,000 in the financial year 2020-21 (from 1 July until 24 September 2020).

When can you apply?

Members can apply for early access to their super through MyGov from Monday 20 April. 

How do you apply?

You can register your interest with the ATO now by logging in to your myGov account and following the ‘Intention to access coronavirus support’ instructions.

  • The ATO will then notify you by email or SMS when applications for early access open.
  • If you don’t already have a myGov account, you can set one up by selecting 'Create an account'.

Where can I find more information?

Via the ATO website.
 

Reducing minimum pension payments

What is the new measure?

The Government has announced it is reducing the minimum pension payment requirement for account-based pensions and similar products by 50% in both 2019-20 and 2020-21 financial years.

When are the new minimums?

The amount by which you can reduce their pension payment will depend on your age:
 

Age

Minimum annual pension payment

NEW* optional minimum annual pension payment for 2019-20 and 2020-21

Under 65

4%

2%

65-74

5%

2.5%

75-79

6%

3%

80-84

7%

3.5%

85-89

9%

4.5%

90-94

11%

5.5%

95+

14%

7%


*Note: You can still choose to take above the minimum.
 
Other things to be aware of:

  • Minimum percentages are calculated on the account balance at commencement of the pension date and at the start of each subsequent financial year.
  • Pension payment amounts for the current financial year (2019/20) will remain the same unless you request to change it.

From when can you reduce your pension payment for 2019/2020?

You can request to reduce your pension payments at any time.
 
If you request to reduce your pension payment to the new minimum or to a specified amount below the current minimum, the earliest we expect to apply the change is from 23 April 2020 (if they are paid fortnightly) or 24 April 2020 (if they are paid monthly).

How do you reduce your pension payments?

There are a couple of ways you can reduce their pension payments:

Contacting our office and we can forward you a ‘Pension Payment Update’ form and returning it to us for processing on your behalf
Things to be aware of:

If you have already been receiving the minimum pension payment on the previous rates and you request to reduce your payments to the new minimum, they will stop any further pension payments for the 2019/2020 financial year.

 Reduced deeming rates

What is the new measure?
  • The Government is reducing the deeming rates by a further 0.25 percentage points on top of the already announced 0.5% reduction to reflect the latest cash rate reductions by the RBA.
  • As a result, the lower deeming rate will be 0.25% and the upper deeming rate will be 2.25%.
  • The Government will automatically apply the lower rates from 1 May 2020, with any increased Age Pension entitlements paid from that date.

 

Market volatility continues

Markets continue to feel the effects of Coronavirus. We continue to closely monitor the situation and our teams are regularly communicating with investment managers. Together we’re actively managing the risks and opportunities in investment markets as developments unfold.

 

Our business response to Coronavirus

Here are just some of the steps we’re taking to prioritise the health, safety and wellbeing of our employees and limit the impact to our members:

  • We’re closely following advice from the Australian Government and Australia’s Chief Medical Officer and are taking practical precautions in line with the latest guidance from both federal and state authorities.
  • We have robust remote working capabilities and continue to monitor arrangements to meet the increased use across all our teams.
  • Our business continuity coordinators and leadership teams meet daily to assess the evolving situation and adjust our responses as required.

If you would like more information, please contact our team on 07 3284 7875 (8.30 am - 5 pm, Monday to Friday, Brisbane time).

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