Government changes to super and pensions
Early release of super on compassionate grounds
The Federal Government has announced temporary changes to the early release of super conditions for individuals as part of its COVID-19 response.
What you need to know
Applicants can apply through the ATO’s My Gov portal or where required, by calling the ATO’s call centre from 20 April 2020, and the ATO will then release any approved authorities to Netwealth. You cannot apply directly through Netwealth.
Applications can be made both in this financial year (up until 30 June 2020) and next financial year (up until 24 September 2020) to release up to $10,000. A full explanation of the application process can be found here.
What we are doing to help
To ensure releases are processed as soon as possible, the following exemptions have been made:
- All releases will be paid to the bank details supplied on the release authority, which are provided via secure means (the ATO). Netwealth will not require a bank account stored on the members account.
- AUSTRAC has confirmed that Point of Identity (KYC) checks are not required for these releases.
- Netwealth will allow these releases to take into account negative cash, where:
- The amount being released is less than 80% of the value of liquid assets;
- The amount is more than 80% of liquid assets, we will redeem sufficient (potentially all) liquid assets, in line with the auto-sell down profile and release these benefits (in some cases close the account) as soon as possible;
- Any account goes below the minimum requirement or into negative cash, liquid assets will be auto-sold monthly, as per existing processes.
Minimum drawdown rates for income streams reduced by 50%
The Government has announced a 50% reduction of the minimum drawdown rates for account-based pensions. You can read more about it in our recent technical paper.
Changes to income stream payments can be processed online or alternatively by contacting netwealth 1800 888 223 or via firstname.lastname@example.org. Of note, we sent an email to you on 31st March listing your clients that previously selected the prescribed minimum and may want to update or cease their payments.
Understanding the investment markets better
In Netwealth's Portfolio Construction podcast series we chat with investment specialists who share their different investment perspectives to help you navigate these uncertain investment cycles.
Hear from specialists like Roger Montgomery, Magellen, and Schroders who discuss the current state of the Australian and global economy, the impacts of a potential recession and Government stimulus-response, the present value of Australian and international equities and the winners and losers from a falling Australian dollar.
The Contact Centre has gone to the cloud
Over the past month our Contact Centre has been busily moving to a new cloud-based platform. As a result, we are pleased to announce:
- Our normal operating hours have been extended: 8:30am - 7:00pm AEDT Mon-Thur and 8:30am - 6:30pm AEDT Friday
- Emails that you will receive from us will utilise our new stylised template
- We will soon be launching an online FAQ and support centre, where you can access information to frequently asked questions
We are not accepting cheques
Due to most Netwealth staff working from home, potential delays in mailing service and the distancing rules being followed, we are:
- Not accepting the receipt of cheques
- Nor issuing cheques
We encourage you to make the switch to our online deposit and payment facilities, such as 'Pay anyone' EFT or BPAY payments.
Updating email and mobile records
During this time it is very important that and your clients get the appropriate communications in a timely manner. To this end, please ensure you and your client details are up to date, especially email and phone number.
You can do this by emailing email@example.com with your correct details or to update client information, complete the change of details form for Super Accelerator accounts can be found here, and for Wealth Accelerator accounts it can be found here.
Support virtual learning during school closures
Netwealth in partnership with Banqer is helping young Australian's learn financial literacy and capability skills. Banqer is a virtual online classroom economy where kids learn to earn, save, spend and invest their money in a safe and engaging way. It is 100% online and is useful as a remote learning tool for teachers. Kids are taught about bank accounts, income, interest on savings, superannuation, taxation, real estate and insurance.
Download money activities for you and the kids
Banqer is also making it easier than ever for parents to teach important money management skills, with a free two-week program of fun activities for the family. From budgeting to financial risk, managing debt and more. Keep the kids busy with these free activities designed to improve their financial capability and prepare them for the financial world ahead.
We're here to help
Despite recent adverse equity markets, Netwealth Group remains in a very strong financial position, is debt-free and has significant cash at bank. Our net inflows have continued to be very strong this quarter at $3.2bn and year to date $7.6bn. Our revenue and profitability remain resilient due to the increased volume in transactions and ancillary revenues.
During this changing environment, we know you may be looking for more information. You contact us on firstname.lastname@example.org or call on 1800 888 223.