- Eligible individuals impacted by COVID-19 able to access up to $20,000 from their superannuation between mid-April and 24 September 2020
- Temporary reduction of minimum super pension drawdown for 2019-20 and 2020-21
The federal government has enacted legislation to deliver a range of measures to support individuals, businesses and the not-for-profit sector through the coronavirus (COVID-19) pandemic.
Measures available to individuals include new conditions for early access to superannuation as well as temporary reductions in the minimum drawdown for recipients of certain superannuation pensions and annuities.
COVID-19 early release of super
From mid-April 2020, eligible individuals impacted by COVID-19 will be able to access up to $10,000 before 1 July 2020 and another $10,000 from 1 July 2020 to 24 September 2020.
To be eligible, individuals must satisfy at least one of the following requirements:
- They are unemployed.
- They are eligible to receive a job seeker payment, youth allowance for jobseekers, parenting payment (including the single and partnered payments), special benefit or farm household allowance.
- After 31 December 2019, they were made redundant or had their work hours reduced by 20% or more.
- If they are sole trader, their business was suspended or there was a reduction in their turnover of 20% or more.
Eligible individuals who access their superannuation under the COVID-19 early release arrangements will not need to pay tax on the amount released. The amounts released will also not affect payments from Centrelink or the Department of Veterans’ Affairs.
Applications for COVID-19 early releases can be made online through myGov.
COVID-19 minimum pension drawdown halved (temporarily)
To assist retirees in the wake of significant losses in the financial markets from the COVID-19 crisis, the federal government has announced a 50% reduction in the minimum drawdown requirements for certain pensions and annuities during the financial years 2019-20 and 2020-21.
The temporary measure applies to account-based pensions and annuities, allocated pensions and annuities, and market-linked pensions and annuities.
The measure will allow retirees the option to drawdown less pension from their account than they would otherwise have been required to.
Superannuation and annuity providers will calculate the actual minimum drawdown required, based on the starting balance of the fund in the relevant financial year. However, indicative minimum pension withdrawals are included in the table below.
| Age | Minimum % withdrawal in 2018-19 | Minimum % withdrawal in 2019-20 | Minimum % withdrawal in 2020-21 | Minimum % withdrawal in 2021-22 |
| Under 65 | 4% | 2% | 2% | 4% |
| 65-74 | 5% | 2.5% | 2.5% | 5% |
| 75-79 | 6% | 3% | 3% | 6% |
| 80-84 | 7% | 3.5% | 3.5% | 7% |
| 85-89 | 9% | 4.5% | 4.5% | 9% |
| 90-94 | 11% | 5.5% | 5.5% | 11% |
| 95 or more | 14% | 7% | 7% | 14% |
A pro rata will apply for pensions and annuities that commence in during the respective financial year.