The Government has announced temporary changes to superannuation to provide assistance to Australians impacted by Coronavirus (COVID-19). One of these changes is the temporary reduction in super pension minimum drawdown rates. More information on the announced change can be found here.
If you have a client who’d like to take advantage of this temporary reduction, we’ve included the information you need to action that request below.
If your client is currently receiving the minimum pension payments they will continue to receive the same pension payment amounts this financial year. For Asgard accounts we will represent in the systems that these clients are on a ‘Nominated’ amount this financial year however they will continue to receive the same pension payment amounts this financial year. You or your clients can request to change their payment amounts as detailed below.
Any client who is receiving the minimum payments (original or new reduced minimums) as at 30 June 2020 (including Asgard clients who are shown as being on a Nominated amount but are actually receiving the minimum) will receive the new reduced ‘minimum’ payments in 2020/21 financial year, unless they request a change to their payments.
We’re making amendments to our systems to allow for the new reduced minimums to be selected from 20 April 2020 for BT Wrap and Asgard and from 27 April 2020 for BT Panorama. If you have a client who would like to reduce their pension payments before these dates, we suggest the options below.
For clients who would like to change their pension amount to the new minimum for the FY20 financial year you can change their pension payment frequency to annual with the next payment due June 2020 to prevent a payment being made before June 2020. You can then follow the instructions below to change to the new reduced minimum from 27 April 2020.
The cut off for amending April pension payments has already passed. If you wish for clients to be on the new reduced minimum for the remainder of the FY20 financial year you can follow the instructions below from 20 April 2020. This includes any clients who were moved to Annual Minimum Pension option to ensure they do not receive a payment in June 2020 (based on the original minimum pension).
Our team is currently undertaking the necessary system updates to accommodate the new reduced pension minimums.
From 20 April 2020, clients who are on the minimum will show as being on a ‘Nominated’ amount. The new reduced minimum amounts will be applied when minimum pension amount is requested from 20 April 2020.
To change your client’s pension payments to the new reduced minimum in AdviserNET from 20 April 2020:
From 20 April 2020, selecting the ‘minimum’ pension amount in the pension amendment tool will result in the client receiving the new reduced minimum amount.
To change your client’s pension payments to the new reduced minimum on the Wrap Desktop from 20 April 2020:
If the client has already received the new minimum amount for FY19/20 they will not receive further payments this year. If you select “minimum” prior to 20 April 2020 your client will be on the original minimum.
To change your client’s pension payments on BT Panorama online from 27 April 2020:
Important note for BT Panorama accounts:
For more information visit our dedicated COVID-19 page for Advisers or the ATO’s dedicated page at ato.gov.au/coronavirus.
Information current as at 1 April 2023.
This communication has been prepared for use by advisers only. It must not be made available to any client and any information in it must not be communicated to any client. This document provides an overview or summary only and it should not be considered a comprehensive statement on any matter or relied upon as such. This information does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness, having regard to these factors before acting on it.
BT Portfolio Services Ltd ABN 73 095 055 208 AFSL 233715 (BTPS) administers Panorama Super. BT Funds Management Limited ABN 63 002 916 458 AFSL 233724 (BTFM) is the trustee and issuer of Panorama Super, which is part of Asgard Independence Plan Division Two ABN 90 194 410 365. Westpac Financial Services Ltd ABN 20 000 241 127 AFSL 233716 (WFSL) is the responsible entity and issuer of interests in BT Managed Portfolios. BTPS operates Panorama Investments. Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714 (Westpac) is the issuer of the BT Cash Management Account (BT CMA) and the BT Cash Management Account Saver (BT CMA Saver). Together, these products are referred to as the Panorama products. BTPS administers BT SuperWrap Personal Plan, SuperWrap Pension Plan, BT SuperWrap Open Pension and BT Compact SuperWrap Pension (collectively, SuperWrap Products). BTFM is the trustee of Asgard Independence Plan Division Two and issuer of SuperWrap Products. BTFM is the trustee and issuer of Asgard eWRAP Super/Pension, Asgard Infinity eWRAP Super/Pension, Asgard Open eWRAP Pension, Asgard Infinity eWRAP Pension, Asgard Managed Profiles and Separately Managed Account – Funds Super and Asgard Elements Super (collectively, Asgard Products). Asgard Capital Management Limited ABN 92 009 279 592, AFSL Number 240695 (Asgard) is the administrator and custodian of the Asgard Products.
A Product Disclosure Statement or other disclosure document (PDS) for the Panorama products and the SuperWrap products can be obtained by contacting BT on 1300 783 143 or by visiting bt.com.au. A PDS for the Asgard Products can be obtained by contacting Asgard on 1800 731 804or by visiting asgard.com.au. A retail client should obtain and consider the relevant PDS before deciding whether to acquire, continue to hold or dispose of interests in a Panorama product, SuperWrap product or Asgard Product.
BTPS, BTFM, Asgard and WFSL are subsidiaries of Westpac. Apart from any interest investors may have in Westpac term deposits, Westpac securities, the BT CMA, or the BT CMA Saver acquired through the Panorama operating system, an investment acquired using the Panorama operating system or an Asgard Product or SuperWrap product is not an investment in, deposit with or any other liability of Westpac or any other company in the Westpac Group. These investments are subject to investment risk, including possible delays in repayment of withdrawal proceeds and loss of income and principal invested. Westpac and its related entities do not stand behind or otherwise guarantee the capital value or investment performance of any investments acquired through the Panorama operating system or any investments in, or acquired through, Asgard generally or through a SuperWrap product.
Superannuation is a means of saving for retirement, which is, in part, compulsory. The Government has placed restrictions on when you can access your investments held in superannuation. The Government has set caps on the amount of money that you can add to your superannuation each year and over your lifetime on both a concessional and non-concessional tax basis. There will be tax consequences if you breach these caps. For more detail, speak with a registered tax agent or visit the ATO website.
Each of BTPS, BTFM, WFSL and Westpac cannot give tax advice. Any tax considerations outlined in this document are general statements, based on an interpretation of current tax laws, and do not constitute tax advice. As such, you should not place reliance on any such taxation considerations as a basis for making your decision with respect to the product.
This information may contain material provided by third parties derived from sources believed to be accurate at its issue date. While such material is published with necessary permission, the Westpac Group accepts no responsibility for the accuracy or completeness of, nor does it endorse any such third party material. To the maximum extent permitted by law, we intend by this notice to exclude liability for this third party material.