Coronavirus and your super - FAQs

Early access to super extended to 31 December 2020

Will Rest allow early release of my super?

Should I apply for early access of my super if I can’t work due to the coronavirus pandemic?

While we understand you may need these payments, it's important you know all your options. We encourage you to consider accessing your super as a last resort only if you really need it. Removing super from your account now could leave you worse off in the long run. CHOICE has estimated that for a 30-year old, $20,000 in super today could become about $50,000 in retirement.*

The government has announced a range of support options for individuals during the coronavirus pandemic. Before you apply to withdraw super early, it might be worth reviewing if you’re eligible for any other forms of support. Your employer may be eligible for the JobKeeper Payment wage subsidy. If both you and your employer are eligible, they could use the wage subsidy to pay you $1,500 per fortnight before tax for up to six months. For more information on JobKeeper Payments, please follow this link.

Before you make your decision, there are other things to consider. Your cover may be cancelled if there isn’t enough money in your account to pay for fees and premiums. You also won’t be able to claim for any events that occur after your cover is cancelled. Once its cancelled, and you’d like cover in the future, you’ll need to apply and provide health evidence.

Check how much your insurance is costing you via MemberAccess or what you’re covered for via the Rest App.

For more information, refer to your Insurance Guide:

If you take out all the money in your super account, your account will be closed.

You can speak to a Rest Adviser about the long-term nature of super investments if you have more questions. There’s information on Rest Advice at the end of this FAQ.

* Source: https://www.choice.com.au/money/financial-planning-and-investing/superannuation/articles/early-access-to-super

I’ve applied to the ATO for my super. What’s the process from here and when will I receive it?

Once you apply to the ATO:

1. The ATO will process your application and within 4 business days they will tell you if it has been approved or rejected (called a determination). This determination will be a letter sent your MyGov inbox. The letter will tell you how much super will be released to you.

2. Then, the ATO will tell Rest that you’ve been approved for early release of your super. You don’t need to contact us directly to let us know your application has been approved by the ATO.

3. If we have your mobile phone number, we’ll send you an SMS within 1-2 days of this advice to let you know we’re processing your payment.

4. We’ll make the payment to you as quickly as possible. Once the ATO approves your application and tells us, the majority of payments will be processed within 5 business days from that point.

However, some requests might extend beyond five business days if we need to do extra verification or other checks on your account.

How much super can I withdraw, and why is my ATO balance different to my Rest super balance?

If you’re eligible, you can withdraw up to $10,000 from 1 July until 31 December 2020, as part of the Government’s Early Release of super scheme.

Please be aware – the super balance shown on the ATO website is not a current balance and may be different to your actual balance.^

Before you apply to the ATO, confirm your most recent super balance here or in the Rest App.

Do you have less than $10,000 in your super account and need to withdraw all of your remaining balance? If so, consider requesting the full $10,000 in your application to the ATO. Then, even if you have less than that amount in your super, it will mean we’ll release your total account balance. This ensures you don’t leave any small amounts in your account as a result of any small increases. However, this will close your Rest account and cancel any insurance cover that you may have.

^Your super balance may have changed due to market fluctuations, administration fees, insurance premiums, extra contributions, super transferred into Rest.

How exactly can I apply for the new early access payments?

You can apply for an early release of up to $10,000 your super from now until 1 July 2020 to 31 December 2020.

Remember, you apply via the ATO – you can’t apply through Rest.

Before you apply, we recommend that you check if we have your correct contact details. You can download the Rest App OR register for MemberAccess and update your contact details online.

1. To apply, you can either:

complete the online application form through the ATO portal in my.gov.au, OR
phone the ATO and apply over the phone.

2. As part of the application process, you will have to certify that you are eligible for an early release of your super.

3. You will then be shown a list of all your open super accounts (you may have more than one) and the account balance for each. Please note, your account balance shown on the ATO website is not current so it’s important to check MemberAccess or the Rest App for your most recent super balance immediately before applying.

4. You will then input the amount of super you’d like to withdraw from your account. Remember, the limit is $10,000. So, if you have multiple accounts, the combined amount can’t exceed $10,000.

5. You will then provide the ATO with the details of the bank account you want your early release paid into.

The ATO will then assess your application and then tell Rest if you’re approved to have an early release of your super.

You can also obtain more information on the early release of super from the ATO website.

You sent me an SMS saying my super would be paid, but nothing has been deposited into my bank account.

I received an SMS from you saying you’d be paying money into my account – is this really from Rest or is it a scam?

How much do I need to leave in my Rest account to keep my insurance cover?

You need to leave enough in your account to meet the cost of your insurance premiums until you return to work and super contributions start going into your account. You can check the cost of your premiums in the Rest App or online in MemberAccess.

If there isn’t enough to cover the premiums, we’ll send you a letter and you’ll have 28 days to top up your super and reinstate your insurance. The top up contribution will need to be enough to cover any outstanding premiums and fees or your insurance won’t restart.

What do you mean by ‘a business day’?

Rest aim to transfer super payments to members’ bank accounts at the end of 5 business days. This is usually allocated by their bank within and extra 3 – 5 business days. A business day is counted as Monday to Friday, and excludes public or bank holidays. For example, a payment request Rest receives from the ATO on Monday the 1^st, is likely to be in a member’s bank account between Wednesday the 10^th and Friday the 12^th. A payment request Rest receives from the ATO on Friday the 1st, is likely to be in a member’s bank account between Tuesday the 12^th and Thursday the 14^th.

What do you mean when you say I’ll be paid in ‘10-14 days’?

Rest aim to transfer super payments to members’ bank accounts at the end of 5 days. This is usually allocated by their bank within an extra 3 – 5 days. As financial institutions work Monday to Friday (excluding public or bank holidays), you should also count days for the weekends. So for example, a payment request Rest receives from the ATO on Monday the 1^st, is likely to be in a member’s bank account between Wednesday the 10^th and Friday the 12^th..^. A payment request Rest receives from the ATO on Friday the 1^st, is likely to be in a member’s bank account between Tuesday the 12^th and Thursday the 14^th.

I only applied for part of the $10,000, but I would now like to apply for the balance.

I didn’t ask this withdrawal to happen, or I think someone has fraudulently asked to withdraw super from my account. What can I do?

I’m receiving strange calls or messages offering to help me access an early release. Are these scams?

There are reports our members are receiving unsolicited phone calls from us about their super. These are fraudulent. Rest will never call you to ask for your personal or financial information or to request a payment.

There are also reports that scammers are calling or sending messages to members offering to facilitate an early release of their super, possibly for a fee. These are also fraudulent.

The ATO is managing the applications for early release of super. The only way to apply is to make an application directly to the ATO. You can do this my logging into my.gov.au or calling the ATO on the phone. The ATO will not charge you a fee for this.

You do not need to go through a third party for assistance in accessing an early release your super. You should not provide a third party with your bank details or information about your super account, and you should not be charged a fee.

If you think you’ve been targeted by someone who is trying to access your super early, report it to EarlyReleaseofSuperTeam@ato.gov.au

I’ve changed my mind and I don’t want to take money out of my super. Can I cancel my request?

I applied a while ago but haven’t received any notification from Rest about my payment.

I think I gave the wrong bank account details. What should I do?

I have three different accounts with three different funds. Can I apply to withdraw from all of them?

Why did I get a different amount than what was in the MyGov account?

The amount stated in your MyGov account is not current. We recommend you check the date it was last updated on the myGov website along with checking your super balance in MemberAccess or the Rest App for your most recent balance.

The amount may have increased or decreased since then due to changes in investment markets, deduction of any fees and insurance premiums (if you have insurance with Rest), if you recently made extra contributions, or transferred super into Rest. If your current account balance is less than the amount approved for release, we’ll release what is available.

I asked to take all my super, but there’s still some left in the account. How can I take that out as well?

You can only apply once between 1 July 2020 up to 31 December 2020. If you have less than $10,000 in your account and want to withdraw your total balance, you may want to consider applying for the full $10,000 rather than an exact amount.

This way, we’ll provide you with whatever amount is available in your account up to $10,000, and you won’t have a small amount left over due to any movements in investment markets, for example.

Please be aware, that if you take all your money from your Rest account, the account will close and any insurance you had will be cancelled. If you are a temporary resident on a student or working visa, you cannot apply for an early release in 2020-21.

I’m on an insurance claim. Can I withdraw money from my super?

You’ll be able to receive a payment under the early release measure, however it may take us a few extra days to process your withdrawal. When you are being paid an Income Protection benefit, your premiums are waived, any amount you withdraw through early release will not be offset against the income component of your Income Protection benefit, but you’ll need to leave enough in your account to meet the cost of your monthly insurance premiums to cover you, should you return to work and you want to remain covered in case of a future injury or illness.

If you’re currently being assessed for a Total and Permanent Disability, or a Terminal Illness claim, you’ll need to leave enough money to cover premiums in the event that your claim is unsuccessful and you want to remain covered.

I’ve taken all the money out of my Rest account. Is my account now closed?

What happens when I go back to my old employer – will I have to open a new account?

What happens to my insurance cover now that I have taken all my money out?

If you’d like to keep your insurance, please leave enough in your account to cover the cost of your insurance for as long as you’re not working and receiving contributions to your super. If you do run low on funds, we’ll send you a letter and you’ll have 28 days to top up your super to reinstate your insurance. The top up contribution will need to be enough to cover any outstanding premiums and fees or your insurance won’t restart.

I’ve taken some super out and my account is now less than $6,000 – do I still have insurance cover?

How can I make this withdrawal up so my retirement savings get back on track?

Who is eligible for these new early release payments?

To be eligible for early release, you must satisfy one or more of the following:

be unemployed; or
be eligible to receive a job seeker payment, youth allowance for jobseekers, parenting payment (which includes the single and partnered payments), special benefit or farm household allowance; or
on or after 1 January 2020:
- you were made redundant; or
- your working hours were reduced by 20% or more; or
- if you’re a sole trader — your business was suspended or there was a reduction in your turnover of 20% or more.

If you’re temporary resident on a student or working visa, you will only be able to access up to $10,000 in superannuation in the 2019-20 financial year. You will not be able to apply for access for a second amount in the 2020-21 financial year.

To be eligible, you must be:

A holder of a student visa for 12 months or more and unable to meet immediate living expenses.
A temporary skilled visa holder and working hours reduced to zero and remain engaged with employer.
A temporary resident visa holder (other than a student or skilled work visa holder) and cannot meet immediate living expenses.

There is no age limit on eligibility.

People withdrawing super will not need to pay tax on amounts released, and the money withdrawn will not affect Centrelink or Veterans’ Affairs payments.

The ATO advises you should keep all evidence of your eligibility, as they may apply checks at a later date.

The ATO has more information about eligibility online.

Can the estate, legal representative or beneficiary of a deceased member apply for the $10,000?

I’m a guardian for a Rest member – can I apply on their behalf?

I’m a Rest Pension member. Can I withdraw $10,000 from my pension account under early release?

Are there other ways I can access my super early?

There are a number of existing conditions you can use to withdraw your super early.

For example, you can apply to Rest to access part of your super if you’re experiencing financial hardship, so long as you meet other eligibility conditions.

You can also apply to the ATO for an early release of your super on compassionate grounds, such as:

Medical – to pay for treatment or travel to treatment for you, your partner, child or other dependant
Mortgage – to stop the bank from selling your home
Disability – to modify your home or car
Palliative care – for you or a dependant
Funeral – to pay for expenses for a dependant.

For more information see our fact sheets at here.

What are the eligibility requirements for a financial hardship payment from Rest?

To be eligible for the early release of super under severe financial hardship, members must meet criteria under either Case 1 or Case 2.

Case 1

You’ve been receiving Commonwealth income support payments for 26 continuous weeks, and
you’re unable to meet reasonable and immediate family living expenses.

Note: A Maximum amount of $10,000 can be withdrawn in any 12-month period.

Case 2

You’ve reached preservation age, plus 39 weeks, and
you’ve been receiving Commonwealth income support payments for a cumulative period of 39 weeks since reaching preservation age, and
you’re not gainfully employed at the date of application (unemployed or employed for less than 10 hours a week).

Note: There are no restrictions on the amount that can be withdrawn.

Does Rest have enough money to cope with a large number of early release requests?

Yes. We are well placed financially to meet any early release payments to members who need financial assistance when applications with the ATO begin from 20 April.

In order to complete these early release payments, we will need to ensure we have enough ‘liquid’ assets in our total portfolio of investments. Liquid assets are investments that can be converted into cash quickly, like shares, bonds and cash.

As at 2nd April 2020, approximately 50% of our default Core Strategy investment option was invested in shares and cash.

We are also focusing on protecting the long-term financial interests of all our Rest members, so we are ‘stress testing’ our financial position regularly.

Does Rest have the ability to freeze early release payments?

Do you have more information about the JobKeeper Payments?

The Government has introduced the JobKeeper Payment, which will allow eligible businesses that have been impacted by coronavirus to keep paying wages to certain employees. If you and your employer are eligible for these payments, they could use the subsidy to pay you $1,500 per fortnight before tax for up to six months.

The Government has advised that your employer will be required to identify any eligible employees and will have to update the ATO every month. Your employer will notify you if you’re receiving the JobKeeper Payment.

However, some employees may be required to inform their employers or Services Australia of their circumstances. For example, if you have multiple employers, you should talk to your primary employer. You will also need to report a JobKeeper Payment as income.

For more information about the eligibility criteria and any steps you might need to take, you can follow this link.

Employers will not be required to make a superannuation payment as part of the JobKeeper payment.

What is the minimum amount I must withdraw from my account-based pension during the coronavirus pandemic?

Age	Default minimum draw-down rate (% of account balance)	Reduced minimum draw-down rates for the 2019-20 and 2020-21 financial years (% of account balance)
Younger than 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 can I reduce my payments?

If you’d like to reduce the minimum amount you can withdraw under the new government levels for the current 2019-20 financial year, you’ll need to let us know.

You can do this online in MemberAccess. Go to the ‘Pension details’ tab in ‘Your account’ and click on ‘Edit details’. Then change your Nomination Type from ‘Nominated Amount’ to ‘Minimum’. Even if you were previously receiving the default minimum payment amount, this will switch over your payments to the new reduced minimum rates. Make sure you click both the ’save’ and then ‘confirm’ buttons to ensure we receive your election.

You can also email us at pension@rest.com.au to let us know.

I’ve recently joined Rest Pension. Do these new requirements apply to me?

If your Rest Pension welcome letter stated your membership started from 25 March 2020 onwards, the new reduced minimum will already apply to you.

If your Rest Pension membership started prior to 25 March 2020, and you’d like to choose the new reduced minimum rates, you’ll need to let us know.

You can also email us at pension@rest.com.au to let us know.

How do I reduce my payments for the 2020-21 financial year?

I want my payments to stay the same for 2019-20 and 2020-21, do I need to do anything?

Should I reduce my payments?

What do changes in the investment market mean for my super? Should I switch to cash?

We understand the uncertainty at the moment can be concerning. Global investment markets are highly volatile, and there is a rapid stream of unsettling news coming from around the world.

Your super balance may have dropped because of this volatility. It’s natural to be concerned. But it’s important to remember - super is a long-term investment, typically with a horizon of at least 10 years. It is designed to ride out shorter-term market volatility.

Depending on your age, you could have many more years of work ahead of you. Even if you’re in your 50s, you still could have 10 years or more to accumulate super and gain investment returns.

Our default investment option, Core Strategy has returned an average return of 8.19% per year since it started in 1988 (as at 31 March 2020). This includes some of the recent market volatility, as well as major downturns like the global financial crisis in 2008.

Before you decide on your investment options, consider speaking to a financial adviser. The Rest Advice team can talk you through your options.

What is Rest doing when the markets are so bad?

At Rest we place an emphasis on managing your retirement savings in the knowledge that short-term market shocks can occur.

Our default Core Strategy investment option is diversified. It’s also invested in more defensive assets like cash and bonds, not just shares. It is also invested in property and infrastructure.

In recent years, we took the view that Australian and global share markets were overvalued and vulnerable to a shock event, like this pandemic.

For that reason, prior to the crisis, wed been reducing the number of shares we held in the Core Strategy for the past few years. We’d also increased the amount of money invested in defensive assets like cash.

Our investment experts are meeting regularly to monitor the situation as it develops and will respond as required.

While we still don’t know the full impact of the coronavirus, please be assured we’ve planned for risks like this in our investment strategy.

Can I have more details about how you’ve been managing investment risks?

During the past few years, Rest strategically reduced the number of shares we held in the Core Strategy prior to the pandemic:

The Core Strategy had a 38% allocation to the overseas and Australian shares asset classes – a lower allocation compared with recent years.^
We also had 12% of the fund in ‘cash’, a more defensive asset class. Holding cash also means we have funds available to purchase shares or other assets at attractive prices after markets fall, so members can benefit more when markets start rising again.^
The Core Strategy’s other investments include property (like office buildings), infrastructure (like ports and wind farms), and other assets not listed on the share market. These are a mix of growth and defensive assets which balance the investment risk in the fund.^

^ Allocations correct up to 29 Feb 2020.

Why have markets dropped so much recently?

Following a long period of continued growth and new record highs, the Australian and global share markets are reacting to international concern around the coronavirus pandemic and falling oil prices.

In recent years we’ve noticed heightened risks in these global markets. These global risk factors include historically low interest rates combined with high levels of debt. Risky markets are more vulnerable to ‘shock’ events, like a pandemic, which trigger major market falls or volatility.

The economic impact of the coronavirus remains uncertain. Many analysts have concerns about global and Australian growth slowing because of the coronavirus. Most global share markets have fallen from recent highs and have been highly volatile, and some commodity prices and currencies have also moved significantly.

Why did the value of Rest’s Property option fall?

Due to the current economic environment, the value of some of the properties we directly invest in (sometimes called unlisted property) has dropped in value. As such, Rest lowered the value of our property asset class by 8.56%. This decrease in value will be factored into the overall value of all our investment options that include property assets.

This reflects the impact the coronavirus pandemic will have on particular properties. For example, retail and office properties may receive lower rent in times of economic stress, which can impact their overall value.

As the economic impact of the coronavirus evolves and becomes clearer, we will continue to review the value of our direct property assets and adjust their prices according to their appropriate value. Any changes in the overall value of the Rest Property option will be reflected in its unit price, which can be found here.

How will the value of Rest’s Property option continue to change?

How has the fall in value of Rest’s property investments impacted our other investment options?

This decrease in value will be reflected in all of Rest’s investment options that include an allocation to property.

Members who are invested in our Property option will see a decrease in the value of this investment.

Members who are invested in Core Strategy, or other ‘structured options’ like Balanced, Capital Stable, Diversified and High Growth, will see a value that reflects all the different assets these options hold.

Our structured options have diversified investments in a variety of different asset classes, for example shares, bonds and cash, and have different amounts allocated to each asset class depending on the risk levels defined by each relevant option. The value of each structured option will reflect the total value of all the assets it holds.

What happens if I move all my super to a different investment portfolio?

When you first join Rest Super or Rest Corporate, your super is automatically invested in the Core Strategy - unless you tell us otherwise. Members can also choose from a number of investment options to suit their personal investment horizons and attitude to risk.

The Core Strategy is a diversified fund, with a mix of growth and defensive assets. It has a long-term horizon of at least 10 years. If markets fall in the short-term, then your account balance can reduce during this time.

During a 20-year period, for example, we estimate 3-4 years will have negative returns. If you’re invested in the Core Strategy or other options with growth assets, you may have noticed your super balance has fallen recently.

Our default investment option, Core Strategy has returned an average return of 8.19% per year since it started in 1988 (as at 31 March 2020). This includes some of the recent market volatility, as well as major downturns like the global financial crisis in 2008.

We actively manage how we invest in various assets to respond to risks and opportunities. But past returns cannot provide an assurance of future performance.

If you’re concerned about your situation and want to review your investment strategy, you should consider speaking to a financial adviser. The Rest Advice team can talk you through your options.

What’s the difference between Rest’s Cash option and your Basic Cash option?

Cash is a ‘defensive’ asset, which can help to minimise risks and volatility when investment markets are down. They tend to be lower risk, so the chances of a negative return are also lower. That also means their returns are usually lower, and they may not keep up with increases in the cost of living.

It’s different from ‘growth’ assets, like shares, which aim to increase the value of your investment. Growth assets historically have a higher return but an increased risk of negative returns.

Rest has two investment options in the cash asset class – Basic Cash and Cash. While they both have a 100% allocation to cash, they invest in different types of securities that are classified as cash investments.

They also have different investment return objectives, with Basic Cash looking to match the return of the Reserve Bank cash rate, while Cash seeks to outperform it. This means that they may each deliver a different investment return, and they also charge different investment fees.

Rest Super members can follow these links to find out more information about our Basic Cash and Cash options, or read our Investment Guide.

Information these options for Rest Pension and Transition to Retirement accounts can be found here.

Does my insurance with Rest cover pandemics?

Does that mean I can make a claim for time off work under my income protection cover?

Coronavirus is generally unlikely to be claimable under Rest's income protection cover. Not because we exclude it, but because our default income protection is designed to cover members who are sick and can’t work for the initial waiting period of more than 60 days. In most cases the symptoms of coronavirus don’t result in people being off work ill for more than 60 days. It’s important to check your waiting period, which you can do by calling us, or you can do online from 1 April in the Insurance tab of MemberAccess.

I’ve been made redundant from my job. Can I claim on my income protection?

My employer has asked me to work from home. Will my income protection still cover me if I’m working from home?

I’ve had to take leave without pay. Will I still be covered by income protection?

Your income protection will continue on the same terms and conditions if you go on leave without pay that has been approved by your employer, or if you go on parental leave from your employer. However, it may not continue if you’re still on leave without pay beyond the earliest of:

your agreed and scheduled return to work date;
24 months.

Your cover will continue under the same terms, only if your employer has approved the leave in writing before you go on leave. You may also be asked for proof that your agreed leave, and scheduled return to work date, were approved.

Conditions may apply including insurance cover ending due to 13 months continuous inactivity on your super account, unless you’ve chosen to keep your cover. You’ll also need to make sure there is enough money in your super to pay your insurance costs during your leave.

If your income protection claim is successful, the payment will start at the end of the 60 day waiting period, or the date your leave period was scheduled to end (whichever is later).

Will my claim be paid back to the date I contracted my illness?

What happens to my insurance if I withdraw my $10,000 limit and my super account closes?

While we understand you may need the payment, withdrawing all your super will close your Rest account. This means your insurance will also end as there is no money to pay your monthly insurance premium.

If you’d like to keep your insurance, please leave enough in your account to cover the cost of your insurance. If you run low on funds after that, we’ll send you a letter and you’ll have 28 days to top up your super to reinstate your insurance. The top up contribution will need to be enough to cover any outstanding premiums and fees or your insurance won’t restart.

Will Rest still be ‘open for business’ as more businesses work from home or limit operations?

We’ve taken steps to ensure our operations and services are maintained for the duration. You can continue to contact us as normal using email, Live Chat, the Rest App, and our Virtual Agent Roger. You can also call our contact centre on 1300 300 778.

However, even with the steps we’ve taken, it’s likely we’ll have high numbers of members calling, leading to delays. If you experience delays, we’re sorry for any inconvenience this causes. We ask for your patience and understanding – we’ll get to your inquiry as quickly as we can.

So many businesses are going to be severely impacted by this. Can you assure me Rest can handle this in the long term?

How can I get professional advice?

I’m trying to get through to the advice team, but no one is answering?

Does Rest charge for professional advice?

Coronavirus and your super - FAQs

Is it possible to access my super early?

How much can be withdrawn from a pension?

Investments and your super

Insurance and the coronavirus

How will Rest manage as offices close?

Can I get professional advice?