the covid-19 and beyond edition · letter from the editor hello, i truly hope this issue of...

THE COVID-19

AND BEYOND EDITIONJUN 2020

LETTER FROM THE EDITOR

Hello, I truly hope this issue of 360°Mag finds you well during this unprecedented time. 2020 has taken some unexpected twists and turns since last we spoke.

I’m not sure anyone quite expected how much of an impact the COVID-19 pandemic would have on our jobs, our economy – and on our way of life.

In this edition we will address some of the ongoing financial impacts COVID-19 is having on our nation.

This month’s magazine usually contains our breakdown of the annual Federal Budget. Given the year’s events, the announcement of the Federal Budget has been moved to October. The Government expects they might have some clearer idea of the economic implications of this health crisis by then. Intrust360° financial adviser Andrew Henderson puts forward his Federal Budget predictions on page 7.

You can also find out what financial assistance may be available to you or family members on page 11, along with a guide to navigating Centrelink for the first time on page 13. And if you have already retired, I recommend you review our article on changes to super pension payments to see if you need to take any action.

In these unprecedented times, Intrust360° is at your service. If you need financial advice, or any further information about the topics covered in this edition, please don’t hesitate to get in touch. We are offering remote assistance to those that need it during COVID-19 – simply call 1300 001 360 or visit intrust360.com.au.

To all our loyal readers, I wish you all the best during this time, and hope you are keeping as safe and well as possible.

Kind regards,

Brendan O’Farrell

Chief Executive Officier Intrust Super

DISCLAIMERThe information in the edition of 360°Magazine has been prepared without taking into account your particular financial needs, circumstances and objectives and is therefore not suitable to be acted on as investment advice. You should assess your own financial situation and may wish to consult an adviser before you make any changes to your financial affairs. A Product Disclosure Statement is available at intrust.com.au or call us on 132 467 for a copy.

Issued by IS Industry Fund Pty Ltd | MySuper Unique Identifier: 65704511371601 | ABN: 45 010 814 623 | AFSL No: 238051 | RSE Licence No: L0001298 | Intrust Super ABN 65 704 511 371 | SPIN: HPP0100AU | RSE Registration No: R1004397.

Intrust360° is our financial planning business (its legal name is IS Financial Planning Pty Ltd ABN 64 143 707 439). It’s a wholly owned subsidiary of IS Industry Fund Pty Ltd ABN: 45 010 814 623. It’s also a corporate authorised representative of Link Advice Pty Limited ABN: 36 105 811 836 | AFSL: 258145 | Corporate Authorised Representative Number: 379207.

The opinions expressed in this column are my own and do not necessarily represent the view of Intrust Super or Intrust360° .

CONTENTS2. SUPPORT AVAILABLE FOR THOSE

FINANCIALLY IMPACTED BY COVID-19

Are you eligible to receive Government support during this time?

6. A NEW DATE FOR THE 2020 BUDGET Intrust360°’s Andrew Henderson tells us his predictions. 8. REDUCED MINIMUM PENSION

PAYMENTS: DO YOU NEED TO TAKE ACTION?

It’s worth checking your pension income before 30 June! 9. ACCESS TO SUPER UNDER COVID-19 Early access to super has been made available to those

who need it.

10. BRENDAN’S BANTER

The economic musings of a super fund CEO. 13. A SIMPLE GUIDE TO NAVIGATING

CENTRELINK New to Centrelink? Here’s how it works.

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6 8

10

9

13

360° | intrust360.com.au [ 1 ]

SUPPORT AVAILABLE FOR THOSE FINANCIALLY IMPACTED BY COVID-19COVID-19 has had significant impacts on the Australian economy, forcing businesses to close, consumers to stay inside and a general drop in economic activity. As a result, many people are suffering from financial hardship.

[ 2 ] 360° | THE COVID-19 AND BEYOND EDITION

A number of financial assistance options have been made available to those impacted by the pandemic, and we have summarised some of the major ones below.

We’re here to help

If you would like to know more about the steps you could be taking to minimise the financial impact of COVID-19, the Intrust360° financial advisers are here to help. The team is offering assistance to members remotely during this time. Just call 1300 001 360 or visit intrust360.com.au to book an appointment.


ASSISTANCE FOR PENSIONERSTemporary reduction in superannuation minimum drawdown requirements

The minimum drawdown requirements for account-based pensions and similar products will be reduced by 50 per cent this financial year and next. This means smaller income payments can be taken from a pension account. Those who can afford to do this will be able to leave more capital invested longer, and potentially take greater advantage of a market recovery. This could help retirement savings last longer.

If you have an Intrust Super Super Stream account, we have more on this update, and information on whether you need to take action, on page 8.

Changes to social security deeming rates

The upper and lower social security deeming rates have been reduced by a further 0.25 percentage points. This is in addition to the 0.5 percentage point reduction already applied to deeming rates this year.

Table 1 - New deeming rates as of 1 May 2020

Upper deeming rate Lower deeming rate

2.25% 0.25%

The new deeming rates became effective from 1 May 2020 and could result in a higher Age Pension payment for eligible recipients.

$750 payments to support households

If you receive income support or are an eligible concession card holder (for example, if you are receiving the Age Pension), an additional support payment of $750 should have been paid to you in March, with another due to be paid in July.

ASSISTANCE FOR INDIVIDUALS Expanded access to income support payments

New support payments have been introduced by Centrelink, including JobSeeker Payments, Youth Allowance Jobseeker and Parenting Payments (Partnered and Single), with reduced waiting periods and means testing. These payments provide income support to workers who meet the income tests as a result of the economic downturn due to COVID-19, and will be available until at least September 2020.

Temporary early access to superannuation

The Government has allowed those affected by COVID-19 to access up to $10,000 of their superannuation in 2019-20, and a further $10,000 in 2020-21. The application process is being managed by the ATO.

All those who are seeking to access this early super release will need to apply through my.gov.au. You can find further information about this measure in our article on page 12.

JobKeeper Payment

The Government has introduced a wage subsidy called JobKeeper to help businesses continue to employ their staff during the downturn caused by COVID-19. If a business has been materially affected by COVID-19, and meets the other eligibility requirements, they will be paid a $1,500 per fortnight subsidy for each employee. The full $1,500 must be passed on to all employees that are being paid under JobKeeper.

This payment will be available to eligible businesses until at least September. The subsidy is also available for those who are self-employed and also meet the criteria. It is hoped that JobKeeper will help keep those working in severely affected industries to retain some form of employment until business can resume.

The first positive case of COVID-19 in Australia

was reported.

25 JAN

27 FEB

12 MAR

16 MAR

18 MAR

20 MAR

19 MAR

23 MAR

22 MAR

The first economic stimulus

package was announced,

including $750 stimulus

payments, reduced

deeming rates and reduced

minimum pension

drawdowns.

A human biosecurity emergency

was declared in Australia.

Australian borders

were closed to all non-residents.

Many non-essential

businesses were

required to close, with restaurants and cafes

restricted to takeaway.

Income support

payments were

increased and eligibility

criteria relaxed. Early

access to super was

announced.

The Reserve Bank of

Australia cut interest rates

to 0.25%.

Non-essential events with more than

500 people in attendance

were cancelled.

Australia’s Emergency Response Plan for

COVID-19 was activated.

TIMELINE OF THE 2020 COVID - 19 PANDEMIC IN AUSTRALIA


This timeline has been limited to cover the broad, national and economic events that occurred during COVID-19. It is based on the information that was available at the time of publishing, and some dates in the future may be subject to change. All efforts have been made to be accurate.

31 MAR

30 MAR

27 APR

20 APR

4 MAY

1 MAY

10 JUL

1 JUL

27 SEP

24 SEP

The first of the $750 support

payments began to be paid

to eligible individuals.

Increased payments for those eligible

to receive income support

payments commenced.

Employer’s began

receiving JobKeeper

wage subsidies for employees.

The second of the $750

support payments will begin to be paid to eligible

individuals.

The JobKeeper

Payment will no longer be

available.

Applications for the early release of

super under COVID-19 will

be closed.

The second payment of early

release of super under

COVID-19 will be available to those eligible.

Social security deeming

rates were reduced by

0.25%.

Applications for early access to

super under COVID-19

were opened.

The JobKeeper payment

was announced.

TIMELINE OF THE 2020 COVID - 19 PANDEMIC IN AUSTRALIA


One of the biggest announcements in the Australian finance world was on 20 March 2020, when Prime Minister Scott Morrison delayed the 2020 Federal Budget until 6 October 2020. Usually, the Federal Budget is announced on the second Tuesday in May each year. Mr Morrison cited the economic difficulties presented by COVID-19 as the reason for the move.

“The idea that you can actually put together any sort of forecast around the economy at this time is simply not sensible,” Mr Morrison said.

360°Magazine will be releasing our usual Budget edition in November, following the announcement. In the meantime, we asked Intrust360° financial adviser Andrew Henderson to provide his thoughts on what might be proposed in the October announcement.

A NEW DATE FOR THE 2020 BUDGET

TAX CHANGES COULD BE LIKELY IN THIS YEAR’S BUDGET ANNOUNCEMENT By Andrew Henderson, Intrust360° financial adviser

Australia’s economic outlook is certainly very different to the one expected in April last year. Back then, the 2019 Federal Budget focused on finally reaching a Budget surplus, implementing tax cuts and infrastructure spending.

In 2020, the devastating economic impacts of COVID-19 are already taking effect, and the Government has had to step in to ensure Australians can survive this crisis. A $320 billion economic response package has launched, including a significant wage subsidy, expansions to Centrelink’s income support payments, and temporary relief for financially distressed businesses.

This spending should help the many millions of Australians impacted by COVID-19 access the financial support they need. And it may not end there. With the economy still very much in recovery mode, the Government may use this year’s Budget to introduce a wholesale review of taxation. They’ll want to do anything they can to encourage employment, investment and business spending to help our economy recover.

WHAT WILL THIS MEAN FOR YOU?Overall, I believe the Government could look at bringing in measures that make the tax system more efficient, while at the same time stimulating economic growth.

The Finance Minister, Mathias Cormann, has already announced the intention to implement a pro-business strategy in the upcoming Budget. He hopes this strategy will maximise the strength of Australia’s economy once we emerge from the COVID-19 crisis.

It’s not yet clear whether these tax changes will also stretch to personal income tax cuts. For now, the Government is mostly focused on reducing business taxes and regulations. They’re looking to stimulate business investment, and ensure businesses are well-positioned to employ more Australians when the current restrictions are eased.

At some stage the Government will no doubt need to address the newly growing deficit, especially given the attention the Coalition has given deficit reduction over the years. This means we can probably expect purse strings to tighten in coming years in the form of reduced spending or increased taxes or some combination of the two. However, for the time being, given that stimulating the economy is a critical focus for the Government, we might get a bit of a reprieve.

Once the Federal Budget is announced in October, Intrust360° will keep our clients informed. If any changes are likely to impact the current financial strategies you have in place, my colleagues and I will be in touch to discuss a review.

In the meantime, if you do need any assistance with your financial strategy, please get in touch. You can speak with myself or one of my colleagues by calling 1300 001 360, or by booking an appointment online at intrust360.com.au.

Cancellations and postponements to major events have become the norm these last few months. The current situation seems to change every week, so it’s been hard to expect anything to run to schedule.


The opinions expressed in this column are my own and do not necessarily represent the view of Intrust Super or Intrust360°.

REDUCED MINIMUM PENSION PAYMENTS: Do you need to take action?

WHAT ARE THE MINIMUM REQUIREMENTS?If you hold an Account-Based or Transitioning to Retirement pension account, you are required to draw down a minimum percentage of your total balance each year. This provides many with an income in retirement.

In addition, the income you draw down from your savings reduces the amount you have invested. So your savings will have less opportunity to take advantage of any market recovery.

Because investment markets have been particularly volatile this year, your balance might currently be lower than you would have expected it to be. By reducing the minimum drawdown requirements, the Government is giving you more flexibility to manage your super savings during this volatile period. These new requirements will apply in both the 2019-20 and 2020-21 financial years.

Your age

Default minimum annual drawdown (% of your total balance)

New minimum annual drawdown (% of your total balance)

< 65 4% 2%

65-74 5% 2.5%

75-79 6% 3%

80-84 7% 3.5%

85-89 9% 4.5%

90-94 11% 5.5%

95 or older 14% 7%

HOW DOES THIS IMPACT YOU?If you can afford to draw less of a pension income, doing so could help you leave more of your capital invested for longer. Given the recent events in investment markets, having more time to take advantage of a market recovery could be a good thing.

If you can’t afford to reduce your pension payments, you don’t have to. You can still draw down as much pension income as you need to meet your expenses. This measure just provides an option for those who are able to keep more of their money invested while they wait for the markets to recover.

CURRENTLY RECEIVING THE MINIMUM? HERE’S WHAT YOU SHOULD DOFor those retirees who are currently drawing down the minimum pension, your pension income will change to the new minimum level in the new financial year.

If you want to ensure you continue receiving enough income to meet your living expenses, you should review your pension payments before the end of the financial year.

Please note that the minimum pension payment amounts are based on the balance of your Super Stream account on 1 July each year. Given the recent market volatility, and depending on your investment choices and any previous pension payments you have received, your balance may be lower on 1 July 2020 than 1 July 2019. This could also affect your pension income in the new financial year.

Intrust Super members can update their pension payments by logging into MemberAccess (at intrust.com.au), or by calling Intrust Super on 132 467.

WE’RE HERE TO HELP

If you’re not sure how much you will need to adjust your pension income in light of these changes, Intrust360° is here to help. Our financial advisers will be able to calculate how much you will need to draw down to continue meeting your expenses. You can talk to one of our advisers by calling 1300 001 360 or booking an appointment online at intrust360.com.au.

COVID-19 has touched numerous aspects of everyday life for people across the world. Our health, social lives, super and our economy have all been affected. In an effort to help Australians pull through the extraordinary events of this pandemic, the Government has made a number of emergency changes to legislation.

If you’re already retired, one such change could be particularly relevant to you.

Given investment markets have been so unstable over the last few months, minimum pension drawdown requirements have been reduced by 50 per cent. This financial year and next, you will be able to choose to take smaller income payments from your pension account. Not sure what this means for you? We explain below!



ACCESS TO SUPER UNDER COVID-19

EARLY RELEASE CLAIMSThe process for early release payments under COVID-19 is being administered by the Australian Taxation Office (ATO). You may be eligible if you:

• receive certain income support payments from Centrelink

• have been made unemployed

• had your working hours reduced by 20 per cent since 1 January 2020.

Applications can be made on the ATO portal by logging in to myGov (my.gov.au). The ATO will assess each claim, and advise applicants they have been approved.

Once the ATO has advised approval of the claim to Intrust Super, the payment process can take up to five business days. A number of Intrust Super members have already applied for this early release payment in the 2019/20 financial year. Most of these claims have already been paid, and additional claims are being processed as quickly as possible.

ACCOUNT SECURITYIn a small percentage of cases, some members may need to go through some additional security checks before their payment is processed. The ATO has already identified 150 cases of fraudulent claims, totalling $120,000. Intrust Super has also identified and protected a number of members from fraudulent claims on their accounts.

You should be especially wary of any unsolicited calls, messages or emails from people asking for your details or offering to help you apply for your super. The process to claim an early release payment is simple and completely free – you should not require assistance from a third party to complete your application.

Always remember to protect yourself and your account by keeping your personal details private, updating your contact details and checking your account regularly.

Intrust Super will never ask for your password. If you receive an email claiming to be from Intrust Super and requesting your MemberAccess password, delete it.

IMPACT OF SUPER WITHDRAWALSAfter 1 July, impacted members will be able to apply for a second early release payment of up to $10,000 up until 24 September 2020, should they still require financial assistance. If you or any younger family members are considering withdrawing super under this legislation, it is important to understand that the impact of accessing retirement savings is often far reaching.

The decision to withdraw a portion of super now could have a significant impact on retirement outcomes in the future.

Markets are currently at low values, and withdrawing any investments now could lock in those losses. It could be much harder for savings to recover, which could make a comfortable retirement harder to achieve.

The table below shows the impact that an early withdrawal of super could have on a retirement balance.

$20,000 withdrawn by a 25 year old ($10,000 in 2019/20 and another $10,000 in 2020/21) could have grown to more than $47,000 in today’s dollars by the time they retire.

Table 1 - Impact of super withdrawals

Age Super withdrawn Difference at retirement (in today’s dollars)

25 $20,000 $47,699

30 $20,000 $43,032

35 $20,000 $38,822

40 $20,000 $35,024

45 $20,000 $31,597

50 $20,000 $28,506

Assumptions: Based on an income of $50,000. Estimates in today’s dollars and adjusted for inflation and rising community living standards. Based on ASIC’s MoneySmart Super withdrawal estimator, with an assumed investment return of 7.5% pa before fees and taxes and a retirement age of 67. Investment fees are assumed to be 0.85% p.a. and assumed tax on earnings is 7.0%. This is a model, not a prediction.

In April, the Government enacted legislation to allow eligible individuals to access up to $10,000 of their super in the 2019/20 financial year, and a further $10,000 for the next financial year 2020/21 between 1 July and 24 September 2020. Only one claim is available each financial year.

THE IMPORTANCE OF SEEKING ADVICEThe decision to withdraw a portion of your super early is a very serious one. Before you make any decision to do so, we recommend you seek advice about all the options that are available to you. It is so important to ensure the decisions you make now don’t negatively impact your future.

The financial advisers at Intrust360° can assess your financial situation and provide some recommendations to help you make an informed decision. They will also be able to explain the impact an early withdrawal could have on your retirement savings.

You can call the team on 1300 001 360 or book an appointment online at intrust360.com.au.

BRENDAN’S BANTERThe economic musings of a super fund CEO

COVID-19 has had a serious impact on the world. I have never seen our economy turn upside down so quickly, let alone every single economy in the world. Share markets fell and thousands of businesses were forced to close while world leaders do their best to contain this horrible virus.


On the world scale, it seems that Australia is handling the health impacts of the pandemic quite well. We ‘flattened the curve’ of COVID-19 cases in a matter of months. If this rate holds, we will be able to start addressing the economic impacts of this crisis. It’s good to see that the resumption of some businesses has already started for many states in the country.

In the meantime, let’s take a look at just how much this crisis has affected global share markets and super returns.

IMPACT ON GLOBAL SHARE MARKETSSuper returns took a turn for the negative in February 2020. The news that COVID-19 had spread across numerous countries saw global share markets dive significantly. Investors were reacting to the prospect that COVID-19 could see hundreds of countries forced to send their economies into ‘hibernation’ to curb the spread.

It was a fair assumption. In the months since February, we’ve seen thousands of industries grind to a halt as countries have entered federally mandated lockdowns. With businesses shut down and whole populations ordered to stay home, economies worldwide have been hit hard. By April, one third of the ASX 100 companies had withdrawn or reduced their earnings guidance – meaning they were unable to provide investors with an estimation of their expected revenue, earnings or expenditure. Thousands of Australian businesses simply had no idea whether they had any hope of earning a profit in the near future.

Since the initial sell off, markets have thankfully begun to rally. There are some positive signs of light at the end of the tunnel. In Australia, at least, some hope of a resumption of business has been forecast, with state governments unveiling timelines on when businesses can resume in the months ahead. Nonetheless, the investing environment remains very volatile. I don’t think we’ve seen the last of the negative returns for the year.

DIVERSIFIED INVESTMENTS CAN MINIMISE THE IMPACTShort-term volatility is an expected part of the super journey, and does occur from time to time. Superannuation is a long-term investment, and our investment portfolio is well-diversified and actively managed to minimise the impact of a fall in share markets.

Since the beginning of February, Australian share markets fell 20.23% to 30 April 2020. In comparison, Intrust Super’s Balanced option fell 9.61% in the three months to 30 April 2020. Intrust Super’s diversified investment portfolio helped to protect our members’ retirement savings from the full negative impact of the loss to share markets.

It’s also important to remember that markets have historically rebounded from events like this. In 2008, the Global Financial Crisis saw the Australian share market fall by 53.9% from its peak. In the 12 months following that crash, the share market returned 51.6%*.

SOMETIMES THE BEST ACTION IS NO ACTION AT ALL

It’s understandable that many may be feeling concerned about the state of the investment market at the moment. You may even be thinking about making an investment switch. But in these situations, it can be more useful to let investments take their course. If you make a change to your investments now, while market values are low, you risk selling low and buying high. Your investment may therefore not benefit from a future market rebound.

By sticking to a strategy and continuing regular investments through a volatile market, your ongoing contributions will be buying assets at increasingly favourable prices. This should deliver increased returns as markets recover. ^

WHAT IF YOU’RE NEARING RETIREMENT?If you’re nearing retirement, or have already retired, you may feel concerned that your retirement savings won’t have as long to recover. Just remember that the aim of a pension account is to provide you with a regular income throughout your retirement. For those who have a pension account, on most occasions, you will be drawing a small amount from your retirement nest egg on a regular basis. The remainder of your balance is being professionally managed by a range of investment managers, whose aim is to protect and grow your retirement savings in both strong and weak economic environments. So even if you are looking to retire in the next few years, or have already, the bulk of your savings should still have time to recover the recent losses.

FINANCIAL ADVICE CAN HELPIt’s normal to feel anxious about market volatility, especially in an unpredictable environment like this one. It’s also important to understand your “risk profile” – that is, the amount of risk you are prepared to accept over a long-term investment period. If you find yourself wanting to change investment options, this may be an indication that you need to review your risk profile. So it’s a very good idea to talk to a financial adviser first.

The Intrust360° financial advisers would be happy to guide you through the range of investment choices available to you, and to help you determine your risk profile. You can book an appointment by calling 1300 001 360 or visiting intrust360.com.au.

The opinions expressed in this column are my own and do not necessarily represent the view of Intrust Super.*Source: ASJO (S&P/ASX200) index^The information contained in this article is of a general nature only and does not take into account your individual financial situation, objectives and needs. You should consider the appropriateness of the general information having regard to your own situation before making any investment decision. A Product Disclosure Statement is available at www.intrust.com.au or call us on 132 467 for a copy. While Intrust Super has no reason to believe that this information will not provide an accurate view of the material covered, Intrust Super does not accept liability for any errors in the content of this information.

360° | intrust360.com.au [ 11 ]

CORE SUPER, EXECUTIVE SUPER AND SELECT SUPER RETURNS AS OF 30 APRIL 2020^

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Monthly 1.11% 1.81% 3.41% 4.97% 7.15% 0.06% 1.42% 1.22% 9.58% 6.19%

FYTD -2.38% -2.79% -3.80% -5.04% -5.05% 1.31% 1.11% -8.16% -7.63% -0.13%

Rolling 1 year -1.40% -1.53% -2.75% -3.86% -3.76% 1.64% 3.56% -7.89% -5.06% 0.13%

Rolling 3 years 2.76% 3.26% 4.51% 5.17% 5.66% 1.89% 3.71% 5.69% 3.78% 8.41%

Rolling 5 years 3.54% 3.94% 5.29% 6.09% 6.32% 2.04% 3.40% 7.39% 5.41% 7.47%

Rolling 7 years 4.45% 5.42% 7.60% 9.02% 9.53% 2.33% 3.86% 7.70% 7.29% 12.22%

Rolling 10 years 4.97% 5.46% 7.09% 7.68% 8.16% 2.87% 5.06% 8.34% 6.75% 9.85%

TRANSITION TO RETIREMENT [TTR] RETURNS AS OF 30 APRIL 2020^

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Monthly 1.11% 1.81% 3.41% 4.97% 7.15% 0.06% 1.42% 1.22% 9.58% 6.19%

FYTD -2.38% -2.79% -3.80% -5.04% -5.05% 1.31% 1.11% -8.16% -7.63% -0.13%

Rolling 1 year -1.40% -1.53% -2.75% -3.86% -3.76% 1.64% 3.56% -7.89% -5.06% 0.13%

Rolling 3 years 2.82% 3.33% 4.59% 5.24% 5.78% 1.90% 3.73% 6.12% 3.82% 8.46%

Rolling 5 years 3.80% 4.30% 5.71% 6.58% 6.74% 2.20% 3.59% 8.20% 5.98% 7.84%

Rolling 7 years 4.80% 6.08% 8.32% 9.66% 10.04% 2.59% 4.21% 8.47% 8.00% 12.85%

Rolling 10 years 5.44% 6.08% 7.72% 8.20% 8.58% 3.20% 5.69% 9.10% 7.29% 10.26%

SUPER STREAM RETURNS AS OF 30 APRIL 2020^

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ares

Monthly 1.29% 2.12% 3.93% 5.76% 8.40% 0.07% 1.66% 1.44% 11.41% 7.07%

FYTD -2.89% -3.48% -4.44% -5.86% -6.34% 1.53% 1.29% -9.46% -9.08% -0.18%

Rolling 1 year -1.82% -2.10% -3.18% -4.71% -4.98% 1.94% 3.98% -9.31% -6.16% -0.22%

Rolling 3 years 3.00% 3.60% 4.99% 5.51% 6.17% 2.22% 4.24% 6.14% 4.18% 9.19%

Rolling 5 years 3.91% 4.46% 5.95% 6.75% 6.98% 2.39% 3.90% 8.22% 6.20% 8.28%

Rolling 7 years 4.87% 6.20% 8.50% 9.78% 10.22% 2.72% 4.43% 8.48% 8.16% 13.17%

Rolling 10 years 5.49% 6.16% 7.84% 8.28% 8.70% 3.30% 5.84% 9.11% 7.41% 10.49%


A SIMPLE GUIDE TO NAVIGATING CENTRELINK Given the widespread impact of COVID-19, many Australians are finding themselves in a financial situation they never expected to be in.According to recent studies, the pandemic has seen household income in Australia drop by $102 billion*. It’s estimated that almost 700,000 Australians lost their jobs in the three months to May 2020*, and it’s expected this figure will continue to rise throughout the year.

The sudden and unexpected loss of income is a big enough shock. But when so many Australians are in the same boat, and thousands of businesses struggling, it’s proving hard for many to find other work.

Millions of Australians have instead had to turn to Centrelink, a prospect they may never have faced before. Centrelink provides financial support for families, job seekers, older Australians, carers and those with disabilities, among many others. And new income support payments have also been introduced to help Australians recover from the financial impacts of COVID-19.

However, navigating the department’s processes can sometimes be challenging.

If you have found yourself needing to seek Centrelink assistance for the first time, we’ve put together a few tips to help you.

OBTAIN A CENTRELINK CRNThe first step is to create a Centrelink customer reference number (CRN). You can do this by logging in to my.gov.au and following the prompts on the ‘Government support for Coronavirus’ banner. Given the current exceptional circumstances, Centrelink have waived their usual identification rules. This means you won’t need to visit a service centre to confirm your identity. Instead, you can identify yourself over the phone.

Once Centrelink have confirmed your identity, they will give you your CRN. You can use this to create your online Centrelink account through myGov.

HOW TO APPLY FOR THE JOBSEEKER PAYMENT (PREVIOUSLY CALLED THE NEWSTART ALLOWANCE)

1 Log in to your myGov account at my.gov.au or create a new one.

2 Create an online Centrelink account and link this to your myGov portal (note this is different to the process to creating a CRN). Find ‘Centrelink’ under the ‘Link a service’ section, then select the option ‘I do not have an online account with Centrelink’ and follow the prompts.

3 Once your account is linked, click through to your Centrelink account from the myGov homepage and select ‘Payments and Claims’, then ‘Claims’ and ‘Make a claim’.

4 A series of options will appear. Choose the category that best suits your circumstances and select ‘Get started’.

5 Complete the personal details questionnaire. You will need to upload any required documents online throughout this process, such as information about your financial situation, taxation and employment history. Centrelink will also advise if you need to provide any supplementary documents within 14 days of your application.

6 You will then need to book a phone appointment. At the time of your appointment, Centrelink will call you from a private number to confirm the details of your claim.

7 Centrelink will let you know the result of your claim through your myGov inbox, Centrelink online account, or the Express Plus Centrelink app (if you have downloaded this).

Centrelink usually requires income support recipients to meet certain requirements (‘mutual obligations’), such as applying for a certain number of jobs or undergoing training. For the six months starting 27 April, some of these mutual obligation requirements have been eased. Most recipients will therefore not need to apply for other jobs to keep receiving income support until at least the end of September.

HOW TO APPLY FOR THE AGE PENSIONIf you have reached the Age Pension eligibility age (currently age 66) and are in need of income support, you may be able to apply for the Age Pension.

1 Follow steps 1-3 above.

2 Under ‘Seniors’, select ‘Get started’.

3 Complete the personal details questionnaire. You will need information about your assets, income, tax, living arrangements and financial situation, among other details.

4 Submit your claim. Once you have submitted, you’ll receive a receipt from Centrelink with details about your claim and a link to track its progress.

5 Centrelink will let you know the result of your claim through your myGov inbox, Centrelink online account, or the Express Plus Centrelink app (if you have downloaded this).

NEED HELP?If you’d like to know more about your eligibility for the Age Pension in particular, Intrust360° are here to help. Our financial advisers can help you navigate the complex social services system and determine how much of the Age Pension you could be eligible to receive. Just call 1300 001 360 or book an appointment online at intrust360.com.au.

*Source: Australian National University, Hardship, distress and resilient: The initial impacts of COVID-19 in Australia, April 2020

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The information in the edition of 360°Magazine has been prepared without taking into account your particular financial needs, circumstances and objectives and is therefore not suitable to be acted on as investment advice. You should assess your own financial situation and may wish to consult an adviser before you make any changes to your financial affairs. A Product Disclosure Statement is available at intrust.com.au or call us on 132 467 for a copy.

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