Update: Coronavirus stimulus package and ATO early release of super
25 Mar 2020 4 min readOn Monday 23 March, the Federal Government passed the Coronavirus Economic Response Package Omnibus Bill 2020. The specific superannuation-related measures are explained below.
Accessing super early
A new compassionate ground of early release allows those who are eligible to withdraw up to $10,000 from their super in this financial year (2019/20) and up to a further $10,000 next financial year (2020/21).
Applications for this early release of super will be to the Australian Taxation Office (ATO) via myGov. Please note that online applications will not be available until mid-April. Applications lodged between the opening date and 30 June 2020 will be for the first payment; applications for the second payment will need to be made between 1 July 2020 and 24 September 2020.
Please note that you do not have to contact NGS Super to apply for early access, although you may need to confirm that we have all your correct details. You can check your contact details are current via Member Online.
You can also call our Helpline on 1300 133 177, 8am to 8pm (AEST/AEDT), Monday to Friday. (Please note that at peak times, you may need to wait while we talk to other members; we do offer a call-back feature so that you can keep your position in the queue rather than staying on hold.)
You can read more about the scheme here and find general coronavirus updates here.
Support for retirees: reduced minimum drawdowns and deeming rates
The legislation also temporarily reduces super minimum drawdown requirements for account-based pensions (income accounts) and similar products by 50 per cent for the 2019/20 and 2020/21 income years.
| Age | New minimum drawdown (% of account balance at 30 June) |
|---|---|
| Under 65 | 2 |
| 65–74 | 2.5 |
| 75–79 | 3 |
| 80-84 | 3.5 |
| 85–89 | 4.5 |
| 90–94 | 5.5 |
| 95 or more | 7 |
It also temporarily reduces both the upper and lower social security deeming rates by a further 0.25 percentage points in addition to the 0.5 percentage point reduction to both rates announced on 12 March 2020. The new deeming rates will be effective from 1 May 2020 and are shown below:
| Until 30 April 2020 | From 1 May 2020 | |
|---|---|---|
| Lower deemed rate | 1% | 0.25% |
| Higher deemed rate | 3% | 2.25% |
You can find more information about these measures here.
More information
We will be keeping members updated on this website as more information becomes available.
