The Federal Government yesterday made further announcements to support Australian households and businesses and to address the significant economic consequences of the coronavirus pandemic.
In his statement, the Treasurer announced the following temporary measures that impact your superannuation:
- Early release of superannuation for members impacted by COVID-19.
- A reduction to superannuation minimum drawdown rates.
For each initiative he further stated:
Early release of superannuation
“The Government will allow individuals in financial stress as a result of the Coronavirus to access up to $10,000 of their superannuation in 2019-20 and a further $10,000 in 2020-21.
Eligible individuals will be able to apply online through myGov for access of up to $10,000 of their superannuation before 1 July 2020. They will also be able to access up to a further $10,000 from 1 July 2020 for another three months. They will not need to pay tax on amounts released and the money they withdraw will not affect Centrelink or Veterans’ Affairs payments.”
Members will need to apply via myGov - not via their super fund - from mid-April 2020. Please note applications cannot be made until that time.
Temporarily reducing superannuation minimum drawdown rates
“The Government is temporarily reducing superannuation minimum drawdown requirements for account based pensions and similar products by 50 per cent for 2019-20 and 2020-21. This measure will benefit retirees by providing them with more flexibility as to how they manage their superannuation assets.”
Read the Australian Government fact sheet here.
Energy Super will support the Government and ensure these changes are enacted for our Members and will provide further details as they arise.