Early access to your super
The Federal Government has released a number of stimulus packages to help Australians and Australian economy to get through the current difficulties arising from the impact of COVID-19.
Providing early access to your superannuation is one of them.
For those individuals who are experiencing financial difficulties have an option to withdraw up to $20,000 in total from your super balance (i.e. $10,000 before 30 June 2020 and another $10,000 from 1 July 2020)
Eligibility for employees
There is an eligibility criterion as to who can access their super as described below:
- You are unemployed; OR
- You are eligible to receive a Jobseeker Payment, Youth Allowance for Jobseekers, Parenting Payment (including the Single and Partnered payments), a 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% or more
Eligibility for sole traders
If you are a sole trader, you are eligible to access your super if your business has suffered or suspended, or there has been a reduction in your turnover of 20% or more.
Listed below are some of the common queries you may have in relation to the above:
How to apply
You will need to apply directly to the ATO (and not to your superfund) through myGov website. https://www.my.gov.au/
When can I apply
You can apply before 1 July 2020 to access the first $10,000 and then apply after 1 July 2020 for another $10,000.
What happens after completing the application
After ATO has processed your application, they will issue a determination. The ATO will also provide a copy of this determination to your super fund which will advise them to release your super payment.
What can I do to ensure I receive payment asap
You should contact your fund to confirm they have your correct details, including your bank account details.
Is the amount subject to income tax
You will not need to pay tax on the amounts released from your superfund. The amount is tax-free.
Does it affect my Centrelink payments
The amount released from super fund should not affect your Centrelink payments.