THE COVID-19 AND BEYOND EDITION JUN 2020 - Intrust Super
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THE COVID-19 AND BEYOND EDITION JUN 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 The opinions expressed in this column are my own and do not necessarily represent the view of Intrust Super or Intrust360° . DISCLAIMER 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. 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.
CONTENTS 2
2. 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? 6 8
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.
9
10 13
360° | intrust360.com.au [ 1 ]
SUPPORT AVAILABLE FOR THOSE FINANCIALLY IMPACTED BY COVID-19 COVID-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.
ASSISTANCE FOR PENSIONERS
Temporary 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.
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.
360° | intrust360.com.au [ 3 ]
TIMELINE OF THE 2020 COVID -
Income
support
payments
were
Non-essential increased
Australia’s events with and eligibility
Emergency more than The Reserve criteria
Response 500 people in Bank of relaxed. Early
Plan for attendance Australia cut access to
COVID-19 was were interest rates super was
activated. cancelled. to 0.25%. announced.
25 12 18 20 23
JAN MAR MAR MAR MAR
27 16 19 22
FEB MAR MAR MAR
The first The first A human Australian Many non-
positive case economic biosecurity borders essential
of COVID-19 stimulus emergency were closed businesses
in Australia package was was declared to all non- were
was reported. announced, in Australia. residents. required to
including close, with
$750 stimulus restaurants
payments, and cafes
reduced restricted to
deeming rates takeaway.
and reduced
minimum
pension
drawdowns.
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.
[ 4 ] 360° | THE COVID-19 AND BEYOND EDITION
- 19 PANDEMIC IN AUSTRALIA
The second
payment
Applications Social of early Applications
The for early security release of for the early
JobKeeper access to deeming super under release of
payment super under rates were COVID-19 will super under
was COVID-19 reduced by be available to COVID-19 will
announced. were opened. 0.25%. those eligible. be closed.
31 27 4 10 27
MAR APR MAY JUL SEP
30 20 1 1 24
MAR APR MAY JUL SEP
The first of Increased Employer’s The second The
the $750 payments for began of the $750 JobKeeper
support those eligible receiving support Payment will
payments to receive JobKeeper payments no longer be
began to income wage will begin available.
be paid support subsidies for to be paid
to eligible payments employees. to eligible
individuals. commenced. individuals.
360° | intrust360.com.au [ 5 ]
[ 6 ] 360° | THE COVID-19 AND BEYOND EDITION
A NEW DATE FOR THE
2020 BUDGET
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.
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.
TAX CHANGES COULD BE WHAT WILL THIS MEAN FOR YOU?
LIKELY IN THIS YEAR’S BUDGET Overall, I believe the Government could look at bringing in
ANNOUNCEMENT measures that make the tax system more efficient, while at
the same time stimulating economic growth.
By Andrew Henderson, Intrust360° financial adviser
The Finance Minister, Mathias Cormann, has already
Australia’s economic outlook is certainly very different to announced the intention to implement a pro-business strategy
the one expected in April last year. Back then, the 2019 in the upcoming Budget. He hopes this strategy will maximise
Federal Budget focused on finally reaching a Budget the strength of Australia’s economy once we emerge from the
surplus, implementing tax cuts and infrastructure COVID-19 crisis.
spending.
It’s not yet clear whether these tax changes will also stretch
In 2020, the devastating economic impacts of COVID-19 to personal income tax cuts. For now, the Government is
are already taking effect, and the Government has had mostly focused on reducing business taxes and regulations.
to step in to ensure Australians can survive this crisis. A They’re looking to stimulate business investment, and ensure
$320 billion economic response package has launched, businesses are well-positioned to employ more Australians
including a significant wage subsidy, expansions to when the current restrictions are eased.
Centrelink’s income support payments, and temporary
relief for financially distressed businesses. At some stage the Government will no doubt need to address
the newly growing deficit, especially given the attention the
This spending should help the many millions of Australians Coalition has given deficit reduction over the years. This
impacted by COVID-19 access the financial support they means we can probably expect purse strings to tighten in
need. And it may not end there. With the economy still coming years in the form of reduced spending or increased
very much in recovery mode, the Government may use taxes or some combination of the two. However, for the time
this year’s Budget to introduce a wholesale review of being, given that stimulating the economy is a critical focus for
taxation. They’ll want to do anything they can to encourage the Government, we might get a bit of a reprieve.
employment, investment and business spending to help
our economy recover. 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.
The opinions expressed in this column are my own and do not necessarily represent the view of Intrust Super or Intrust360°.
360° | intrust360.com.au [ 7 ]
REDUCED MINIMUM PENSION PAYMENTS:
Do you need to take action?
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!
WHAT ARE THE MINIMUM CURRENTLY RECEIVING THE
REQUIREMENTS? MINIMUM? HERE’S WHAT YOU
If you hold an Account-Based or Transitioning to Retirement SHOULD DO
pension account, you are required to draw down a minimum
For those retirees who are currently drawing down the minimum
percentage of your total balance each year. This provides many
pension, your pension income will change to the new minimum
with an income in retirement.
level in the new financial year.
In addition, the income you draw down from your savings
reduces the amount you have invested. So your savings will If you want to ensure you continue receiving enough income
have less opportunity to take advantage of any market recovery. to meet your living expenses, you should review your pension
payments before the end of the financial year.
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,
Please note that the minimum pension payment amounts
the Government is giving you more flexibility to manage your super
are based on the balance of your Super Stream account
savings during this volatile period. These new requirements will apply
on 1 July each year. Given the recent market volatility, and
in both the 2019-20 and 2020-21 financial years.
depending on your investment choices and any previous
pension payments you have received, your balance may
Default minimum New minimum be lower on 1 July 2020 than 1 July 2019. This could also
annual drawdown annual drawdown affect your pension income in the new financial year.
Your age
(% of your total (% of your total
balance) balance)
Intrust Super members can update their pension payments by
< 65 4% 2%
logging into MemberAccess (at intrust.com.au), or by calling
65-74 5% 2.5% Intrust Super on 132 467.
75-79 6% 3%
80-84 7% 3.5%
85-89 9% 4.5% WE’RE HERE TO HELP
90-94 11% 5.5%
If you’re not sure how much you will need to adjust your
95 or older 14% 7% pension income in light of these changes, Intrust360°
is here to help. Our financial advisers will be able to
HOW DOES THIS IMPACT YOU? calculate how much you will need to draw down to
continue meeting your expenses. You can talk to one
If you can afford to draw less of a pension income, doing so could of our advisers by calling 1300 001 360 or booking an
help you leave more of your capital invested for longer. Given the appointment online at intrust360.com.au.
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.
[ 8 ] 360° | THE COVID-19 AND BEYOND EDITIONACCESS TO SUPER UNDER COVID-19
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.
EARLY RELEASE CLAIMS IMPACT OF SUPER WITHDRAWALS
The process for early release payments under COVID-19 is After 1 July, impacted members will be able to apply for a
being administered by the Australian Taxation Office (ATO). second early release payment of up to $10,000 up until 24
You may be eligible if you: September 2020, should they still require financial assistance. If
you or any younger family members are considering withdrawing
• receive certain income support payments from Centrelink super under this legislation, it is important to understand that
• have been made unemployed the impact of accessing retirement savings is often far reaching.
• had your working hours reduced by 20 per cent since The decision to withdraw a portion of super now could have a
1 January 2020. significant impact on retirement outcomes in the future.
Applications can be made on the ATO portal by logging in to Markets are currently at low values, and withdrawing any
myGov (my.gov.au). The ATO will assess each claim, and advise investments now could lock in those losses. It could be much
applicants they have been approved. harder for savings to recover, which could make a comfortable
retirement harder to achieve.
Once the ATO has advised approval of the claim to Intrust Super,
the payment process can take up to five business days. A number The table below shows the impact that an early withdrawal of
of Intrust Super members have already applied for this early super could have on a retirement balance.
release payment in the 2019/20 financial year. Most of these
claims have already been paid, and additional claims are being $20,000 withdrawn by a 25 year old ($10,000 in 2019/20 and
processed as quickly as possible. another $10,000 in 2020/21) could have grown to more than
$47,000 in today’s dollars by the time they retire.
ACCOUNT SECURITY
Table 1 - Impact of super withdrawals
In a small percentage of cases, some members may need to go
through some additional security checks before their payment Age Super withdrawn Difference at retirement
is processed. The ATO has already identified 150 cases of (in today’s dollars)
fraudulent claims, totalling $120,000. Intrust Super has also
identified and protected a number of members from fraudulent 25 $20,000 $47,699
claims on their accounts. 30 $20,000 $43,032
You should be especially wary of any unsolicited calls, messages 35 $20,000 $38,822
or emails from people asking for your details or offering to help 40 $20,000 $35,024
you apply for your super. The process to claim an early release
45 $20,000 $31,597
payment is simple and completely free – you should not require
assistance from a third party to complete your application. 50 $20,000 $28,506
Always remember to protect yourself and your account by Assumptions: Based on an income of $50,000. Estimates in today’s
keeping your personal details private, updating your contact dollars and adjusted for inflation and rising community living
details and checking your account regularly. standards. Based on ASIC’s MoneySmart Super withdrawal estimator,
with an assumed investment return of 7.5% pa before fees and taxes
Intrust Super will never ask for your password. If you receive an and a retirement age of 67. Investment fees are assumed to be 0.85%
email claiming to be from Intrust Super and requesting your p.a. and assumed tax on earnings is 7.0%. This is a model, not a
MemberAccess password, delete it. prediction.
THE IMPORTANCE OF SEEKING ADVICE
The 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.
360° | intrust360.com.au [ 9 ]BRENDAN’S BANTER
The economic musings of a super fund CEO
COVID-19 has had a serious
impact on the world. I have 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
never seen our economy turn months. If this rate holds, we will be able to start addressing the economic impacts
upside down so quickly, let of this crisis. It’s good to see that the resumption of some businesses has already
started for many states in the country.
alone every single economy in
the world. Share markets fell In the meantime, let’s take a look at just how much this crisis has affected global
share markets and super returns.
and thousands of businesses
were forced to close while
world leaders do their best to IMPACT ON GLOBAL SHARE MARKETS
contain this horrible virus. Super 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 IMPACT
Short-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%*.
[ 10 ] 360° | THE COVID-19 AND BEYOND EDITIONSOMETIMES 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 HELP
It’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^
[fixed interest]
Conservative^
International
Australian
Combined
MySuper |
Balanced
Property
Shares^
Growth
Shares
Shares
Bonds
Stable
Cash
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^
[fixed interest]
Conservative^
International
Australian
Combined
MySuper |
Balanced
Property
Shares^
Growth
Shares
Shares
Bonds
Stable
Cash
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^
International
Conservative
Australian
Combined
Balanced
Property
interest]
Growth
Shares
Shares
Shares
Bonds
Stable
[fixed
Cash
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%
[ 12 ] 360° | THE COVID-19 AND BEYOND EDITIONA 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 CRN Centrelink usually requires income support recipients to meet
certain requirements (‘mutual obligations’), such as applying
The first step is to create a Centrelink customer reference for a certain number of jobs or undergoing training. For the
number (CRN). You can do this by logging in to my.gov.au six months starting 27 April, some of these mutual obligation
and following the prompts on the ‘Government support requirements have been eased. Most recipients will therefore
for Coronavirus’ banner. Given the current exceptional not need to apply for other jobs to keep receiving income
circumstances, Centrelink have waived their usual support until at least the end of September.
identification rules. This means you won’t need to visit a
service centre to confirm your identity. Instead, you can HOW TO APPLY FOR THE
identify yourself over the phone.
AGE PENSION
Once Centrelink have confirmed your identity, they will
give you your CRN. You can use this to create your online If you have reached the Age Pension eligibility age (currently
Centrelink account through myGov. age 66) and are in need of income support, you may be able to
apply for the Age Pension.
HOW TO APPLY FOR THE 1 Follow steps 1-3 above.
JOBSEEKER PAYMENT 2 Under ‘Seniors’, select ‘Get started’.
(PREVIOUSLY CALLED THE NEWSTART ALLOWANCE)
3 Complete the personal details questionnaire. You will
1 Log in to your myGov account at my.gov.au or create a new one. need information about your assets, income, tax, living
arrangements and financial situation, among other details.
2 Create an online Centrelink account and link this to your
myGov portal (note this is different to the process to 4 Submit your claim. Once you have submitted, you’ll
creating a CRN). Find ‘Centrelink’ under the ‘Link a service’ receive a receipt from Centrelink with details about
section, then select the option ‘I do not have an online your claim and a link to track its progress.
account with Centrelink’ and follow the prompts.
5 Centrelink will let you know the result of your claim
3 Once your account is linked, click through to your through your myGov inbox, Centrelink online account,
Centrelink account from the myGov homepage and select or the Express Plus Centrelink app (if you have
‘Payments and Claims’, then ‘Claims’ and ‘Make a claim’. downloaded this).
4 A series of options will appear. Choose the category that
best suits your circumstances and select ‘Get started’.
NEED HELP?
5 Complete the personal details questionnaire. You will need
to upload any required documents online throughout this If you’d like to know more about your eligibility for
process, such as information about your financial situation, the Age Pension in particular, Intrust360° are here
taxation and employment history. Centrelink will also to help. Our financial advisers can help you navigate
advise if you need to provide any supplementary documents the complex social services system and determine
within 14 days of your application. how much of the Age Pension you could be eligible to
6 You will then need to book a phone appointment. At the receive. Just call 1300 001 360 or book an appointment
time of your appointment, Centrelink will call you from a online at intrust360.com.au.
private number to confirm the details of your claim.
7 Centrelink will let you know the result of your claim through *Source: Australian National University, Hardship, distress and resilient:
The initial impacts of COVID-19 in Australia, April 2020
your myGov inbox, Centrelink online account, or the Express
Plus Centrelink app (if you have downloaded this).
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