Early release of Super extended to Dec 31

Superannuation fund members facing financial hardship have been given an extended window to access retirement savings under the early release scheme.

The federal government has extended the length of time in which people will be able to use the early release of superannuation (ERS) relief initiative, with the scheme now set to close at the end of the year instead of late September.

The move was announced today by Treasurer Josh Frydenberg as part of an Economic and Fiscal Update in which the government also announced the date on which the deferred Retirement Income Covenant would apply.

In announcing the extension of the ERS scheme to 31 December 2020, the update stated the government was taking the action “to increase the scope for individuals who may still be financially impacted by COVID-19 to access early release in the coming months”.

The amount available to super fund members via ERS will remain at $10,000 and no changes to eligibility requirements have been announced, meaning the initial conditions imposed will remain until the scheme concludes at the end of year.

Other relief measures, including the temporary halving of superannuation minimum drawdown requirements for the 2020 and 2021 income years and reductions in the upper and lower social security deeming rates, will also remain in place.

The ERS extension has been estimated by the government to decrease its receipts by $2.2 billion over the budget and forward estimates period, and its use in future economic downturns to provide hardship relief for fund members was recently flagged by a government senator.

In the update, the government restated it was deferring the commencement of the Retirement Income Covenant, which it had announced in the 2018/19 budget as starting on 1 July 2020, to 1 July 2022.

The deferment was announced in May, but no final start date was given at that time, and the update stated the new start date was “to allow continued consultation and legislative drafting to take place during COVID-19. This will also allow finalisation of the measure to be informed by the Retirement Income Review”.

The review panel is due to hand its report to the government in the coming week.

Jason Spits
July 23, 2020
smsfmagazine.com.au

Any advice contained in this website is of a general nature only and does not take into account your circumstances or needs. You must decide if this information is suitable to your personal situation or seek advice.

Rolanda Adams Financial Services have been my financial advisers for over 20 years. I have always found them to be highly intelligent, knowledgeable and professional in what they do. Rolanda Adams Financial Services is accessible at all times and patiently explain terms that I do not fully understand. I can highly recommend Rolanda Adams Financial Services and it is a pleasure to do so. I do this with the utmost confidence. Marcia Montgomery (Retiree – home duties and ex-clerk with Water Board)

I retired Oct 2012, and seeking Financial Advice for my retirement funds, I decided to have Rolanda Adams Financial Services look after my financial affairs, and so happy I did. Since my retirement I am extremely comfortable with Rolanda Adams Financial Services’s advice, experience and strategies and the returns on my investments. Rolanda Adams Financial Services is my "Breath of Fresh Air" at this stage of my life and she makes herself available 24/7 should you need to talk with her. Steve Hoad (Ground Engineer, Qantas)

In 1997 I left Energy Australia and decided to join Rolanda Adams Financial Services for the financial support and advice that I would need into the future. That decision has proved a very good one and I am still with Rolanda Adams Financial Services who have given me advice and friendship over those many years. The advice given has ensured that my investments have been protected and the major loses, of some, during the GFC was not felt by me unduly. Rolanda Adams Financial Services and the team are very easy to contact at any time and one is always received in a most professional manner. I would be most happy to recommend Rolanda Adams Financial Services to all who need financial services. Graham Fleeton (Manager, Property Insurance Group Energy Australia)

Rolanda Adams Financial Services has been my Adviser for the past 18 years. Through their wide industry experience and professional expertise they have ensured the sound development and ongoing management of my investments. Their advice has invariably been sound, timely and entirely tuned to meet my personal needs in retirement. they have a friendly, engaging manner and are always readily available to address any of my concerns. I have no hesitation in recommending Rolanda Adams Financial Services. Neil O'Keeffe (Chief Inspector (retired), Australian Customs Service)