Government Stimulus Package for Individuals
The Government have announced a number of relief measures to support Australians in response to the impact COVID-19 is having on our community and economy. Attempting to put some money back in to the pockets of Australians, below is an outline of what has been proposed.
Income Stream Drawdown Rates
The Government has introduced a temporary reduction in the minimum annual withdrawal amount from your super income stream, reducing the need for some to sell down assets when markets are low. The rates outlined below will apply for the duration of this and next financial year.
|Minimum Pension Payments|
|Less than 65|
Access to Superannuation Savings
Access to superannuation savings eligibility conditions have been broadened to those in financial distress as a result of the impact of COVID-19. To be eligible to access super savings, one of the following conditions must be met:
- You are unemployed
- You are able to receive the following payments:
- Youth allowance
- Parenting payment
- Special benefits or Farm Household Allowance
- On or after 1 January 2020, you were:
- Made redundant,
- your hours of work were reduced by at least 20%, or
- if you’re a sole trader, your business was suspected or your turnover reduced by at least 20%
In the case of meeting one of the conditions above, up to $10,000 may be withdrawn before 30 June 2020. And an additional $10,000 from 1 July 2020 (A three month withdrawal window is expected to apply).
Claims are likely to be available from mid-April via the MyGov site, with certification required by the ATO, confirming that one of the above criteria has been met. On confirmation, the ATO will issue you and your super fund a determination that the withdrawal can be paid.
When will these initiatives be implemented?
With the COVID-19 situation rapidly changing, the Government intent to implement many of the stimulus measures as soon as possible. Parliament has met this week with the Bills passed as legislation to give effect to each proposal.
Modoras remains committed to assisting you through these unprecedented times. For professional advice on making the most of Government stimulus measures and making well-informed business decisions; contact us on 1300 888 803 book a catch up with a Modoras professional.
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