Welcome to another new financial year!
At NESS Super we realise these are challenging times and that some businesses are still dealing with COVID-19 disruptions and the economic impact. At NESS Super we are here to help you.
We know that some businesses are juggling decisions to reduce employee hours or trim the workforce by retrenching staff. If this scenario applies to you, the following temporary Superannuation Access rule changes may be worth sharing with your employees.
If you have staff have who are adversely impacted, they may be able to access some of their superannuation balance early, to help deal with financial hardship.
The Australian Government is allowing eligible individuals a second round of Tax-Free early access of up to $10,000. Eligible people can apply between 1 July 2020 and 24 September 2020 via the www.my.gov.au here.
To be eligible, applicants must satisfy one of the following criteria:
On or after 1 January 2020:
- The person was made redundant
- The employee’s working hours were reduced by 20% or more
- The person is Unemployed
- The person is eligible to receive various forms of Centrelink benefit as per the Australian Government Economic response to the Coronavirus - 'Early access to superannuation'
Sole Traders may also be eligible to apply for access to superannuation if their business was suspended or they experienced a reduction in turnover of 20% or more. The factsheet referred to above explains in greater detail and includes some relevant case studies.
Whilst this relief can be useful to help with cash flow or ease the burden of financial hardship, it is important to note the implications of accessing super early.
Withdrawing super and reducing your balance may impact the following:
- Income protection insurance
- Death and TPD insurance cover
Superannuation members should consider seeking financial advice before applying for early release of super. NESS Super has an arrangement in place with Link Advice* who provide general and simple advice over the phone. There is no additional cost for phone-based advice as this service is included in the NESS membership.
Employees should also be aware of the ATO’s recent announcement that a penalty of $12,000 may apply to anyone providing false or misleading information to access super early without meeting the eligibility requirements.
We sincerely hope this information is useful. As always, if you would like to discuss anything superannuation related, please feel free to call Steve Osborne, our key contact for Employers, on 0436 000 401 or contact via email at firstname.lastname@example.org
Alternatively, you can contact our Member Services Team between 8.30am and 6.00pm (Sydney time) Monday to Friday on 1800 022 067 or email us at email@example.com
Also, please keep an eye on our website www.nesssuper.com.au for ongoing updates.
The information contained in this article is up to date at the time of its publication. However, some information can change over time. The contents are for general information only and do not constitute personal advice. We recommend that you consult with a suitably qualified person before making any financial decisions.
* Advice is provided by Link Advice Pty Limited, ABN 36 105 811 836, ASFL No. 258 145.