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Work out how much you want to withdraw and in which years, and which super fund the amount should be withdrawn from | The amounts should be the total amounts and by financial year.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