Federal Government Superannuation Changes and Assistance

An important one was a reduction in the minimum pension required to be drawn down in the 2019-20 financial year and the next financial year 2020-21. Effectively, retirees will be able to keep more of their superannuation nest egg rather than be forced to sell shares into a falling market.

Draw-down rates halved for Account-based Superannuation Pensions

Draw-down rates for account-based superannuation pensions are normally 4% per annum for people under 65 and then increase as pension recipients age increases. These rates have been halved for the 2020 financial year and the 2021 financial year to 2% for those people aged 64 or under and 2.5% for those between 65 and 74 years old. This means that those who have not already drawn over the required minimum would be able to stop payments for the remainder of this financial year. It should be noted however that if you have already drawn over the minimum allowed, you will not be able to put funds back.

Australian Government Fact Sheet for Retirees

Access $10,000 superannuation payment this financial year 2020

In a second initiative, those suffering financial hardship due to the Coronavirus pandemic will be able to access a $10,000 Coronavirus superannuation payment this financial year 2020, and another $10,000 next financial year after 1 July 2020. The payments are expected to be available from mid-April 2020 and will be able to be applied for online via myGov or via the ATO for a payment to be made from an SMSF.

Factsheet on the $10,000 Coronavirus Superannuation Payment

Payments to Support Households and Retirees

The Government is providing two separate $750 payments to social security, veteran and other income support recipients and eligible concession card holders (including holders of the Commonwealth Seniors Healthcare Card). The first payment will be made from 31 March 2020 and the second payment will be made from 13 July 2020. Around half of those that benefit are pensioners. This payment will help to support confidence and domestic demand in the economy. The second payment will not be made to those eligible for the Coronavirus supplement.

Factsheet on Payments Support to Households

The information provided should not be considered personal financial advice as it is intended to provide general advice only. The content has been prepared without taking into account your personal objectives, financial situations or needs. You should seek personal financial advice before making any financial or investment decisions