How to model early access to superannuation (economic response to the coronavirus)

The following steps are a workaround for modelling an early withdrawal from superannuation using the new option that is part of the economic response to the coronavirus.

StepDetails
Check your client is eligible to make the withdrawalsYou should check the relevant government resource to ensure that the individual is eligible to make an early withdrawal from super, as Pathfinder will not check for this.

Work out how much you want to withdraw and in which years, and which super fund the amount should be withdrawn from

The amounts should be the total amounts and by financial year. For example $10,000 in 2020/21.

You will need to ensure that your withdrawal amounts and years are within the allowed rules, as Pathfinder will not check for this.

Enter the amount as a direct, non-taxable income
  1. Go to the Cash flows & Goals step (top menu), then the Cash flows sub-step.
  2. In the Income section, click the Add income button and fill in the details as follows:
    1. Type: Non taxable
    2. Name: e.g. John early super withdrawal
    3. Owner: Individual who will be receiving the payment
    4. You can leave the Amount, Frequency and Start year fields, as you'll edit them in the 'Custom' field.
  3. Then, in the same row, click the Customise button and in the pop-up window:
    1. Frequency: Annual
    2. index by: None
    3. Reference year: leave as default
    4. In the Edit row in the table, fill in the contribution amounts for the correct years.  Make sure all other years are zero.
    5. For more help, see How to use the series builder
Enter the amount as an expenditure from their super fund
  1. Go to the Cash flows & Goals step (top menu), then the Cash flows sub-step.
  2. In the Expense section, click the Add expense button and fill in the details as follows:
    1. Type: Other
    2. Name: John early super withdrawal
    3. Owner: The super fund from which the withdrawal will be made
    4. You can leave the Amount, Frequency and Start year fields, as you'll edit them in the 'Custom' field.
  3. Then, in the same row, click the Customise button and in the pop-up window fill in the same details as you entered for the 'Income':
    1. Frequency: Annual
    2. index by: None
    3. Reference year: leave as default
    4. In the Edit row in the table, fill in the contribution amounts for the correct years.  Make sure all other years are zero.
Check your results

This contribution will be visible in your results in a few places:

  • At the Cash flows & action items  sub-step (under the  Results  step on the top menu), in the Cash flows report, the withdrawal will be listed in the 'Revenue' section
  • You can see the withdrawal from the super fund at the Results > Detailed reports, step.  On the left menu, click the Individual's name, then: (their super fund name) > (their super fund name) > Transaction account (detailed)
  • At the end of the report, you'll see withdrawal in the 'Expenditure' section
Manually adjust your results

Note that Pathfinder won't show this withdrawal in the following places:

  • In the action items - you can manually add an action item, such as "Use the early access to super rules to withdraw (Amount) from your super fund called (super fund name)".
  • In the 'Build super' or 'Retire' sections of the Straegy summary (neither in the charts nor dot points)