The Financial Services Council supports the Government’s package of temporary measures which it says will greatly assist Australians in financial hardship during the current national emergency.
It notes that the measures include:
- Temporary early release of a limited amount of superannuation for individuals in financial stress
- Temporary reduction in minimum superannuation drawdown rates for retirees
- Temporary reduction in social security deeming rates
FSC CEO Sally Loane says in a statement that the FSC has always supported the early release of superannuation in cases of genuine hardship, and recognises that the existing early release framework was not designed to address the needs of individuals during a national emergency such as the current pandemic.
“We understand that the Government’s temporary measures for early access to $10,000 tax-free this financial year and another $10,000 the following financial year will apply only to those in severe economic hardship, such as people who have lost their jobs as a result of the coronavirus crisis,” she says.
The FSC states it will continue to work closely with the industry, the agencies and Government “…to understand the potential impact of the package and ensure these measures are implemented in a way that manages liquidity and systemic risks”.