Early access to super

EMPLOYEE OBLIGATIONS

Individuals affected by the coronavirus can access up to $10,000 of their superannuation in 2019-20 and a further $10,000 in 2020-21. You will be able to apply for early release of your superannuation from 20 April 2020.

While superannuation helps people save for retirement, the Government recognises that for those significantly financially affected by the coronavirus, accessing some of their superannuation today may outweigh the benefits of maintaining those savings until retirement.

Eligible individuals will be able to apply online through myGov to access up to $10,000 of their superannuation before 1 July 2020. They will also be able to access up to a further $10,000 from 1 July 2020 until 24 September 2020.

Eligibility

To apply for early release you must satisfy any one or more of the following requirements: 

  • you’re unemployed
  • you’re 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
  • on or after 1 January 2020
    • you were made redundant
    • your working hours were reduced by 20 per cent or more
    • if you’re a sole trader, your business was suspended or there was a reduction in your turnover of 20 per cent or more

People accessing their superannuation will not need to pay tax on amounts released and the money they withdraw will not affect Centrelink or Veterans’ Affairs payments. 

How to apply

If you’re eligible for this early release, you’ll be able to apply directly to the Australian Taxation Office (ATO) through the myGov website. You’ll need to certify that you meet the above eligibility criteria.

After the ATO has processed your application, they’ll issue you with a determination. The ATO will also provide a copy of this determination to your superannuation fund. This will advise them to release your superannuation payment. Your fund will then make the payment to you, without you needing to apply to them directly. Separate arrangements will apply if you are a member of a self-managed superannuation fund (SMSF). 

If you have any queries, please feel free to contact our office on (03) 8838 8726.

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