The Federal Government has announced plans to allow people affected by the COVID-19 (coronavirus) outbreak to apply for early release of their superannuation.
If you’re eligible, you can access up to $10,000 of your super before 1 July 2020 and up to a further $10,000 from 1 July 2020 for around three months. Please note that you can only make one withdrawal in each financial year.
1. Who is eligible to apply for the early access to Super?
It’s expected you’ll be able to apply for early release if:
- you’re unemployed, or
- you’re eligible to receive a job seeker payment, parenting payment, special benefit or farm household allowance, or
- On or after 1 January 2020
- You were made redundant; or
- Your working hours were reduced by 20 percent or more;
- If you are a sole trader -your business was suspended or there was a reduction in your turnover of 20 percent or more
2. Do I have to pay tax on amount released?
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.
3. How to apply for this payment?
If you are eligible for this new ground of early release, you can apply directly to the ATO through the myGov website: https://my.gov.au/ You will need to certify that you meet the above eligibility criteria. 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.
Separate arrangements will apply if you are a member of a self-managed superannuation fund (SMSF). Further guidance will be available on the ATO website: www.ato.gov.au