NEW SUPERANNUATION MEASURES

As part of the COVID-19 Stimulus Package, the Federal Government has announced the following measures in relation to superannuation:-

  1. Sole Traders and Individual taxpayers in “Financial distress” as a result of the COVID-19 downturn will have limited access to their superannuation savings of up to $10,000 this financial year (2019/20) and $10,000 next financial year (2020/21).
  2. You will be able to access your superannuation if you are: unemployed; or eligible to receive a jobseeker payment, youth allowance for jobseekers, parenting payment, special benefit or the farm household allowance; on or after 1 January 2020 you were made redundant or your working hours were reduced by 20% or more or if you are a sole trader where your business was suspended or there was a reduction in your turnover of 20% or more.
  3. Eligible individuals will be able to apply online through MyGov for access of up to $10k of their superannuation before 1 July 2020. They will also be able to access up to a further $10k from 1 July 2020 for another three months. They will not need to pay tax on amounts released.
  4. For those clients who are drawing pensions, the minimum pension requirements will be halved. If you currently draw a pension, and we look after your SMSF, we will be in contact with you directly regarding this measure and how it applies to you.

SUPER GUARANTEE PAYMENTS

As an employer, you still need to meet your super guarantee obligations for your employees. Read more information for employers affected by disaster on the Australian Taxation Office (ATO) website.

For further information, contact your Client Manager at FinCare.