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Assistance available for SMSFs and their members

The Government’s economic response to coronavirus will provide SMSFs and their members with additional support, including reducing minimum drawdown rates and early release of superannuation.

The minimum annual payment required for account-based pensions and annuities has been reduced in an initiative to assist retirees. For the 2019-20 and 2020-21 financial years, the minimum annual payment required for members has been reduced by 50%.

If the minimum drawdown amount has been paid, no further payments will be required for the rest of the year. Those who have already paid more than the minimum drawdown amount are able to have their member recontribute this amount if the member is eligible to make contributions. Re-contributions will continue to be subjected to rules or limits, such as contributions caps.

Members of SMSFs who have been adversely affected by COVID-19 may be able to access up to $10,000 of their super before 1 July 2020, as well as a further $10,000 between 1 July 2020 and 24 September 2020, on compassionate grounds. To be eligible, members must satisfy at least one of the following criteria:

Applications for early access can be made through myGov.

In addition to these initiatives, the Government will also be automatically deferring the lodgement of 2019 SMSF annual returns until 30 Junes 2020.

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What to consider when consolidating your super

August 27, 2020

The ATO reported that 45% of working Australians were not aware that they had multiple super accounts in 2016. Having multiple super accounts is particularly common for individuals who have had more than one job. If this is you, it is important to identify and manage your super accounts because having more than one can be costly as a result of account fees from multiple funds.To combat this, you may want to consolidate your super, which moves all your super into one account. Not only does this save on fees, but it also makes your super easier to manage and keep track of.

Before consolidating your super, it is important to do the following:

Research your funds’ policy
Compare your active super accounts so you can make the right choice about which one you should close. Things to assess include:

Check employer contributions
Changing funds may affect how much your employer contributes, as some employers contribute more to certain funds. Check your current accounts to see if changing funds will affect this. Once you have selected a super fund, regardless of whether you choose a new super fund or one of your existing ones, provide your employer with the details they need to pay super into your selected account.

Gather the relevant information
When consolidating your super, you will need to have the following details ready: