The Government is proposing to allow individuals affected by the impacts of the Coronavirus to access up to $10,000 of their superannuation in the 2019-20 financial year and a further $10,000 in the 2020-21 financial year.
While superannuation is intended to be saved 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 for approximately three months (exact timing will depend on the passage of the relevant legislation).
Am I Eligible?
To apply for early release you must satisfy any one or more of the following requirements:
- You are unemployed
Or
- You are eligible to receive a:
- job seeker payment,
- youth allowance for jobseekers,
- parenting payment (includes single and partnered payments),
- special benefit,
- farm household allowance
Or
- On or after 1 January 2020 you:
- were made redundant,
- your working hours were reduced by 20 per cent or more,
- if you are a sole trader and 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 do I apply?
If you are eligible, you can apply directly to the ATO through the myGov website: www.my.gov.au
What is the process?
- You will need to certify that you meet the eligibility criteria.
- The ATO will process your application.
- After the ATO has processed your application, they will issue you with a determination.
- The ATO will also provide a copy of this determination to your superannuation fund, which 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.
When can I apply?
You will be able to apply for early release of your superannuation from mid-April 2020.
To ensure you receive your payment as soon as possible, you should ensure your super fund has your correct details, including your current bank account details and proof of identity documents. Please speak with your advisor if you are unsure about this
Further guidance will be available on the ATO website: www.ato.gov.au
We continue to monitor the ongoing market conditions with regards to the growing escalation of the Coronavirus health crisis as part of our wider operations. If you have any questions about your investments or the path that lays ahead, please get in contact with an advisor here at Endorphin Wealth.
