Two measures announced in the Government’s stimulus package are changes related to superannuation.
Superannuation Pension Streams Reduced
The Government is temporarily reducing superannuation minimum drawdown requirements for account-based pensions and similar products. This is of benefit to retirees holding these products, by reducing the need to sell investment assets to fund minimum drawdown requirements.
The minimum annual amount that you’re required to withdraw from your super income stream will be halved for the remainder of this financial year and for the 2020/21 financial year.
We are contacting our clients who are impacted by this change, but if you have any concerns or questions please don’t hesitate give us a call.
Early Access to Superannuation
Eligible individuals will be able to apply through myGov to access 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.
To apply for early release you must be any of the following;
- unemployed;
- eligible to receive a job seeker payment, youth allowance for jobseekers, parenting payment, special benefit or farm household allowance;
- made redundant on or after 1 January 2020;
- your working hours were reduced by 20 per cent or more on or after 1 January 2020;
- if you are a sole trader — your business was suspended or there was a reduction in your turnover of 20 per cent or more on or after 1 January 2020.
If you have any questions about these changes, or any other aspect of your financial planning please give me a call to discuss on 02 9908 9888 or email wealth@edneyryan.com.au.
Kate is an Authorised Representative of Hillross Financial Services Limited (AR Number 1007833).