The Government has announced that it will allow individuals to access up to $10,000 from their superfunds between now and 30th June 2020 and an additional $10,000 in the 2021 financial year, bringing the total available superannuation that an individual can withdraw to $20,000. The payment from your fund will be tax-free and will not affect Centrelink or Veterine Affairs’ payments.
You will need to meet certain eligibility criteria to be able to access your super.
Eligibility
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 (which includes the single and partnered payments), 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 per cent or more; or
if you are a sole trader — your business was suspended or there was a reduction in your turnover of 20 per cent or more.
How to apply
If you are eligible, you can apply directly to the ATO through the myGov website. 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. 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
Timing
You will be able to apply for early release of your superannuation from mid-April 2020.
This information was compiled using excerpts from the Treasury website, last updated 23rd March 2020. View the fact sheet here
Before making this decision, please speak to your financial adviser. If you would like us to refer you to a trusted adviser, please get in touch with us as soon as possible.