Your guide to super during theCOVID-19pandemic.
Notification will be automatically provided to super funds to release funds to eligible members. However, members may still be required to verify their identity with their fund to prevent fraud. 3. Temporarily reduced minimum drawdown rates for retirees. Minimum drawdown rates from superannuation for retirees have been reduced by half for the 2019-20 and 2020-21 income years. The changes will allowmore members to avoid the need to sell their assets during a period of economic downturn.
During this time of uncertainty, Hostplus remains committed to helping its members in any way possible. We’re sharing regular updates for both members and employers online. Visit hostplus.com.au/covid19 for the latest news. This fact sheet addresses changes introduced by the Federal Government on 22 March 2020 and other important information. New from 22 March 2020 1. Easier access to the JobSeeker Payment The Government has temporarily broadened the eligibility criteria for individuals, including sole traders, to access the jobseeker payment (formerly Newstart). In addition, the base payment has been temporarily increased by an extra $550 per fortnight. Visit Services Australia for more information. 2. Early release of superannuation Eligible members will be able to access up to $10,000, tax-free, from their super account both prior to and after 1 July 2020—providing amaximumof $20,000 permember. Eligible members are those: (i) who are unemployed; (ii) who are eligible under the Social Security Act 1991 (Cth) to receive a jobseeker payment, parenting payment (which includes the single and partnered payments) or special benefit; (iii) who are eligible to receive youth allowance under the Social Security Act 1991 (Cth) (other than on the basis that the person is undertaking full-time study or is a new apprentice); (iv) who are eligible to receive farm household allowance under the FarmHousehold Support Act 2014 (Cth); or (v) who on or after 1 January 2020: · was made redundant; · had their working hours reduced by 20% or more (including to zero); or · in the case of sole traders, had their business suspended or suffered a reduction in turnover of 20% or more. Applications are expected to commence in mid-April and will be assessed by the ATO via Mygov.
Age
Dafault draw-down rates
Reduced draw-down rates
Under 65
4%
2%
65-74
5%
2.5%
75-79
6%
3%
80-84
7%
3.5%
85-89
9%
4.5%
90-94
11%
5.5%
95+
14%
7%
For members approaching retirement Typically, members must reach what’s known as their ‘preservation age’ before they can begin accessing their super benefits. The preservation age changes depending on when themember was born and is detailed in the table below.
Date of birth
Preservation age
Before 1 July 1960
55
1 July 1960 – 30 June 1961
56
1 July 1961 – 30 June 1962
57
1 July 1962 – 30 June 1963
58
1 July 1963 – 30 June 1964
59
From 1 July 1964
60
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