COVID(19) – Government Superannuation Packages
The government has released many economic packages to help the economy withstand and recover from Covid(19). Two of these packages are in relation to superannuation.
Reduction in minimum pension requirements
For many retires, the significant losses in financial markets as a result of Covid(19) are having a negative effect on the account balance of their superannuation.
As a result of this, the Government has reduced the minimum annual payment requirements for pensions by 50% in the 2019-2020 and 2020-2021 financial years.
|
Age |
Minimum % withdrawal (in all other cases) |
Reduced rates by 50% for the 2019-20 and 2020-21 income years (%) |
|
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 or more |
14% |
7% |
Early release of superannuation
Individuals financially affected by Covid(19) can access their superannuation savings of up to $10,000 before 1 July 2020 and a further $10,000 from 1 July 2020 until 24 September 2020.
To apply for release, you must satisfy any one or more of the following:
- You are unemployed
- You are eligible to receive a job seeker payment, youth allowance for jobseekers, parenting payment, special benefit or household allowance.
- On or after 1 January 2020 you were made redundant
- On or after 1 January 2020 your working hours were reduced by 20% or more
- If you are a sole trader, your business was suspended or there was a reduction in your turnover of 20% or more
If you are eligible, you will be able to apply online through the MyGov website.
If you wish to discuss your specific circumstances in more detail please contact us on 02 9281 4067.
