Ask an adviser or a tax agent if doubtful on early release says Hume

22 April 2020

With the Australian Taxation Office (ATO) contacting people who have pre-registered for access to $10,000 hardship early release superannuation, the Government is estimating that between 1.6 million and 1.7 million will apply over the two tranches of the exercise.

That is the expectation of the Assistant Minister for Superannuation, Financial Services and Financial Technology, Senator Jane Hume who said the current first tranche would end on 30 June with the next tranche opening on 1 July to end 24 September.

And amid warnings from Industry Super Australia (ISA) that polling suggested up to 40% of applicants for early release might be ineligible because they had not actually been adversely affected, Hume accused the industry funds group of “push-polling”.

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ISA retained polling firm UMR with the result showing that one million people who had not been financially impacted by the Coronavirus shutdowns were intending to access their super early, something which Hume described as “tawdry attempt to undermine confidence in the early release of super mechanisms”.

However, she conceded in a national radio interview that people needed to take the decision about early access seriously.

“Of course, there's going to be a trade-off between taking money out of superannuation now and keeping it in and locking it up for their retirement savings in the future,” she said while claiming that there “are some pretty wild numbers floating around about what taking $10,000 today means for you”.

“We would suggest that people either talk to a trusted financial adviser if they're confused or a registered tax agent or there's also a very handy calculator on the Money Smart - ASIC's Money Smart website that will tell you exactly what taking out money from superannuation means for you,” Hume said.

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Does Senator Hume have a suggestion on how the everyday australian is going to contact or afford to speak with a financial planner or Accountant thanks to everything that has gone on from FASEA.

Clueless. Doesn't she realise that thanks to her now over regulation these customers cannot afford to get advice!

How ironic a politician going public with the comment " Talk to your trusted financial adviser"..The last time I heard this was...NEVER!

As an accountant and tax agent - no chance are we going near this. Implications, accusations and the short memory of regulators, PI insurance, Government bodies and every other group, individual, special interest will be coming. I wish the accountant profession and taxation advisers the best of luck. maybe time to change profession as an expert witness contingency group. Leave it to the financial planning profession to advise - correctly.

Well, we certainly can no longer deliver personal advice for a total of $300, however, we could issue general advice only regarding the early release of superannuation parameters , deliver a general warning before proceeding that the application for these funds must be considered carefully in light of any negative effects on retirement accumulation and that they must contact the ATO directly to facilitate access and the ATO will directly contact their super fund to request the release. We could confirm they must not contact their super fund to facilitate the transfer of funds and they must ensure they retain adequate funds to pay for any insurance premiums that are being deducted from their account.
General information only for a $300 fee and about 10 mins work in total.
Present an invoice noting that general advice only was provided regarding the subject matter and that no personal circumstances were taken into account.
Or, the individual could get exactly the same information online and pay nothing.
That is why the ASIC restriction of the $300 maximum fee for personal advice is simply ridiculous and yet another example of the regulator controlling the commercial model of financial advice to the detriment of advisers.

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