Reducing the minimum drawdown rates
The Australian Government has temporarily reduced the minimum annual payment required for all of the following:
- account-based pensions and annuities
- allocated pensions and annuities
- market-linked pensions and annuities.
The reduction is by 50% for the financial years 2019-20 and 2020-21.
Accessing your super early
You’ll also be able to access your super early if you’re under financial stress due to COVID-19.
From 20 April 2020, you can access up to $10,000 of your super before 1 July 2020. From 1 July 2020, you can also access a further $10,000 until 24 September 2020. You’ll be able to do this through the Australian Taxation Office (ATO) service on myGov. You can register your interest to do this now through myGov.
To apply for early release, the ATO website states you must meet one or more of the following:
- you’re unemployed
- you’re eligible for JobSeeker Payment, Youth Allowance for jobseekers, Parenting Payment single or partnered, Special Benefit or Farm Household Allowance
- you became redundant on or after 1 January 2020
- your working hours reduced by 20% or more on or after 1 January 2020
- you’re a sole trader and you had to suspend your business or your turnover has reduced by 20% or more.
We won’t treat the amounts you take out as income. You also won’t need to pay tax on them.
Learn more about early release of super as a result of COVID-19 on the ATO website.
Talk to a financial counsellor about your situation. The National Debt Helpline has free counsellors you can call from anywhere in Australia.
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