If you have been affected by the COVID-19 pandemic, you may be eligible to access up to $10,000 of your superannuation until 31st of December 2020.

The Government announced earlier this year that for those eligible, a single payment of up to $10,000 could be accessed in the 2019-20 financial year and a second single payment of up to $10,000 in the 2020-21 financial year. They have since extended the application period for the second payment to 31st of December 2020.

Funds withdrawn due to the COVID-19 early release of super scheme are not subject to tax and they do not need to be included in your tax return.

To meet eligibility one of the following circumstances must apply

• you are unemployed
• you are eligible to receive one of the following
  o JobSeeker payment
  o Youth Allowance for job seekers (unless you are undertaking full-time study or are a new apprentice)
  o Parenting payment (which includes the single and partnered payments)
  o Special Benefit
  o Farm Household Allowance
• on or after 1 January 2020 either
  o you were made redundant
  o your working hours were reduced by 20% or more (including to zero)
  o you were a sole trader and your business was suspended or there was a reduction in turnover of 20% or more (partners in a partnership are not eligible unless the partner satisfies any other of the eligibility).

Applications can only be made directly to the ATO through the myGov website. You do not need to attach evidence to support your application, but you may be asked in future to provide evidence. For more information please visit the ato website by clicking here. 

Please note an early withdrawal of funds from super may impact your retirement income, and in some cases may affect any insurance you hold within your superannuation. It is important that you discuss this with your financial adviser who can provide you with advice that is suited to your individual circumstances.

Changes to minimum pension draw down rates

The Government has announced that minimum pension drawdown rates have halved for the 2019-20 and 2020-21 financial years. This is intended to help those who are retired or close to retirement to manage

In most cases, if you have elected the minimum drawdown on your pension account or TTR, your product provider will automatically reduce the pension amounts withdrawn for the 2020-21 financial year. If you have any questions about your withdrawals or these changes please make a time to discuss this with your adviser.

Making super and investment decisions during the pandemic

 It’s important to make well-informed decisions and not panic during these uncertain times. It is understandable to be nervous when the investment markets are volatile and it may be a good time to review your investment strategy, but reacting in fear and deciding to sell down funds into cash means you will lock in any losses and miss out on any market recovery.

Remember super is a long-term investment for most people and over time it will recover from the ups and downs in the market. Speak to your adviser about any worry you any be feeling and seek their professional advice before making any decisions.