Last updated 10 June 2020
What are the temporary compassionate payments announced by the Government?
The Government announced temporary changes to the early release conditions for individuals as part of its economic COVID-19 virus response. The Government is allowing eligible individuals to access up to $10,000 of their superannuation in 2019-20 and a further $10,000 from 1 July to 31 December 2020.
Members who are seeking more information about the early access to their super balances under the existing conditions of release should visit the Accessing my super page.
What measures are the Government putting in place to help businesses?
The Government announced several initiatives to help businesses continue to operate through the crisis:
a) Eligible not-for-profits and small businesses will be given up to $100,000 tax-free to keep their staff employed during the crisis. The payments will be delivered by the ATO as a credit on activity statements from late April.
b) The Government is guaranteeing new unsecured loans to small and medium-sized businesses (which have less than $50 million in turnover), up to $250,000 for three years will be available to eligible borrowers. No repayments will be required for the first six months.
Both initiatives are available until 30 September 2020.
How is Cbus managing volatility in the share market?
We understand that the current COVID-19 outbreak is having a significant impact on our employers and members, as well as the broader Australian community.
We’re actively monitoring the market as the situation evolves and investors seek to understand the impact of the COVID-19 pandemic. And, while we understand that the recent market volatility will be a concern for some members, our investment team are experienced in managing fluctuating markets.
Whilst past performance is not an indicator of future performance, history has shown us that markets do recover so it’s important to maintain a longer-term focus when considering your super.
For more information, read our Volatility in markets fact sheet.
How is Cbus managing members’ super during this crisis?
Cbus takes a long-term approach to the way we invest our members’ super. Our default investment option is designed to deliver returns above inflation over ten years. This approach takes into account that we expect negative returns from time to time, even including unusual times like this.
Our investment options are structured to manage risk by investing in a range of different assets. Investing in shares, property, infrastructure, fixed income and cash helps to minimise risk so we aren’t relying solely on one asset class.
We have around 100 investment professionals who are closely monitoring activity in financial markets and can actively assess investment risks and opportunities as they arise.
To help members, we’ve created an easy to understand Volatility in markets fact sheet.
Should members consider making changes to their super?
We understand that in this period of uncertainty many members might consider changing their investment options.
When changing investment options, it’s important to consider the investment time frame and what could be the future impact of changing investment options based on short-term share market movements.
The chart below shows the difference in value from someone switching investment options during the Global Financial Crisis over ten years ago and not switching back, when compared to staying invested in the Growth (Cbus MySuper) option the whole time.
We recommend that members carefully consider changing their investment options and suggest they view the series of videos the Cbus Advice team have put together. These videos address questions that employers and members are currently asking.
Please also be aware that there is an increased level of financial scams during this time. If you’re in doubt about the authenticity of an email, text or phone call, please delete it immediately or hang up. To be sure that the communication is from Cbus, log in to your account or call us directly.
How can you access support from Cbus during this period of uncertainty and change?
Cbus Member and Employer services are available to provide continued service and support. We encourage our employers and members to visit our website, or members can log in to their account as their first port of call for information.
Employers can call us on 1300 361 784, or email email@example.com with any questions.
Are there any impacts to making super payments through the Clearing House?
Clearing House operations will continue as normal. Please continue to follow usual process and call your Employer Relationship Manager if you have any questions.
How will Cbus manage unpaid super from employers that may be adversely impacted by COVID-19?
Your business may have been impacted through loss of labour force or lack of cash flow. Our Arrears team will manage this process as usual for now. However, similar to the response to the bushfire crisis, the team are taking extreme care to tailor their responses and approach to those employers that are being adversely impacted by the current situation.
Employer situations will be considered on a case by case basis as they arise. Please be assured that our Arrears team are closely monitoring the situation.