Super and pension provisions for members affected by Coronavirus
Over the weekend, the Australian Government announced its economic support package to help Australians who are under financial stress as a result of the Coronavirus.
Two of the support measures announced include the early release of superannuation for those financially affected by the Coronavirus and temporarily reducing minimum pension payment requirements for retirees.
Here’s what you need to know about these measures and how you can apply. Please note: The exact timing of these measures will depend on the passage of the relevant legislation.
EARLY RELEASE OF SUPER
From mid-April (subject to legislation), eligible Australians will be able to withdraw up to $10,000 of their superannuation in 2019-20, plus a further $10,000 in 2020-21.
These payments are tax-free and will not affect any Centrelink or Veterans’ Affairs payments you receive. Members will be required to apply directly to the ATO, rather than through their super fund.
For more information, you can read the Government’s Fact Sheet.
TEMPORARY REDUCTION OF MINIMUM PENSION PAYMENTS
To provide retirees with more flexibility in managing their retirement incomes, 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.
Be aware of scams involving Coronavirus
Visit the Stay Smart Online website for information about Coronavirus scams and how to stay safe. If you think you have been scammed, you can make a report on the Scamwatch website, and find more information about where to get help.
To learn more about these measures, you can read the Australian Government’s announcement. Legislation is required to be enacted to permit these measures and I will continue to keep you updated.