The federal government has extended the length of time in which people will be able to use the early release of superannuation (ERS) relief initiative, with the scheme now set to close at the end of the year instead of late September.

The move was announced today by Treasurer Josh Frydenberg as part of an Economic and Fiscal Update in which the government also announced the date on which the deferred Retirement Income Covenant would apply.

In announcing the extension of the ERS scheme to 31 December 2020, the update stated the government was taking the action “to increase the scope for individuals who may still be financially impacted by COVID-19 to access early release in the coming months”.

The amount available to super fund members via ERS will remain at $10,000 and no changes to eligibility requirements have been announced, meaning the initial conditions imposed will remain until the scheme concludes at the end of year.

Other relief measures, including the temporary halving of superannuation minimum drawdown requirements for the 2020 and 2021 income years and reductions in the upper and lower social security deeming rates, will also remain in place.

The ERS extension has been estimated by the government to decrease its receipts by $2.2 billion over the budget and forward estimates period, and its use in future economic downturns to provide hardship relief for fund members was recently flagged by a government senator.

In the update, the government restated it was deferring the commencement of the Retirement Income Covenant, which it had announced in the 2018/19 budget as starting on 1 July 2020, to 1 July 2022.

The deferment was announced in May, but no final start date was given at that time, and the update stated the new start date was “to allow continued consultation and legislative drafting to take place during COVID-19. This will also allow finalisation of the measure to be informed by the Retirement Income Review”.

The review panel is due to hand its report to the government in the coming week.

Jason Spits
July 23, 2020
smsfmagazine.com.au

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David Forrest

Director
BEc (Acc), MBA, CPA, FFin

David has been in the Financial Services Industry for nearly 30 years. He was one of the founding Directors of the successful Financial Planning and Stockbroking Practice, Henderson Gregory Forrest, for a decade. Prior to that, he held senior roles in companies such as ING, KPMG Accountants and AMP. David was previously Chairman of OAMPS Superannuation Trustee Board and currently serves as an independent Board Director for several companies.

David’s extensive experience in all forms of superannuation, including Self Managed Super Funds (SMSF), Defined Benefit Funds, retirement funding through Account Based Pensions, stockbroking with a focus on Direct Share Investment, Taxation/Remuneration Planning, Centrelink, Aged Care and business management, equip him to advise expertly on all aspects of Financial Advice.

Those with a particular interest in superannuation/SMSFs, direct share investment, salary packaging or applying for the Centrelink Pension will find his knowledge and ability in formulating and implementing creative, logical and simple wealth creation strategies a valuable asset.

David maintains a strong personalised client service focus, providing tailored solutions for clients.

Qualifications:

Bachelor of Economics with Accounting Major (BEc (Acc))
Master of Business Administration (MBA)
Certified Practising Accountant (CPA Australia)
Graduate Diploma in Applied Finance and Investment (FFin)

Memberships:

Member of the professional association of Certified Practising Accountants (CPA Australia)

Contact:

David Forrest is an Authorised Representative of Integrity Financial (SA) Pty Ltd ABN 16 133 921 187 — AFSL No 334846

Michelle Forrest

Business Finance Manager
B Bus (Acc), CPA

Michelle’s career has spanned across the Financial Services, Retirement Living and Aged Care industries working in the private sector, not for profit and more recently with the state government for over 20 years. Her experience extends to many facets of the financial services industry, having worked in superannuation administration, technical support and financial planning practice administration.

Commencing with AMP and subsequently working in commerce and accounting roles with companies such as Brambles, Adelaide Bank Retirement Services, ECH Inc and SA Health and Wellbeing, Michelle returns to financial services after working in practice financial management at Henderson Gregory Forrest. This wide range of experience from senior accounting and management roles has provided Michelle with a strong background in business administration.

With an astute financial acumen and keen interest in business improvement strategies, Michelle ensures the smooth running of the Integrity Financial Advisory practice providing valued management support to our personalised client service focus.

Qualifications: