The Government is allowing individuals affected by the Coronavirus to access up to $10,000 of their superannuation in 2019-20 and a further $10,000 in 2020-21.
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% or more; or
- if you are a sole trader — your business was suspended or there was a reduction in your turnover of 20% 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
Applications can be made directly to the Australian Taxation Office (ATO) through the myGov website: www.my.gov.au. You will need to certify that you meet the above eligibility criteria.
- Processing for APRA Funds
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. To ensure you receive your payment, contact your fund to check that they have your correct details, including your current bank account details and proof of identity documents.
- Processing for SMSFs
After applying through myGov, the ATO will issue you with a determination advising of your eligibility to release the superannuation payment. Only once your Self Managed Superannuation Fund (SMSF) receives the determination from you, the trustee is authorised to make the payment. Keep the ATO determination documentation on file for audit purposes. You cannot withdraw from your SMSF without the determination as it will be a breach of the superannuation law and penalties will apply.
When to apply
You will be able to apply for early release of your superannuation:
- from 20 April 2020 and before 1 July 2020 for the 2019-2020 year; and
- from 1 July 2020 until 24 September 2020 for the 2020-2021 year.
Note, you will only be able to make one request for each financial year. If you nominate a lesser amount of $10,000 in 2019-2020 you will not be able to apply again for the remainder nor apply for more than $10,000 from 1 July 2020.
You can register your interest now by logging in to your myGov account and following the “Intention to access coronavirus support” instructions. If you don’t already have a myGov account, you can set one up by selecting ‘create an account’. The ATO will notify you by email or SMS when applications open.
What to consider
Before finalising your application for early release, you should consider:
- Your current options with your Accountant and/or Financial Advisor during the Coronavirus pandemic
- How withdrawing your superannuation may affect your:
- income protection insurance
- life/total permanent disability insurance cover
- Insurance may not be available on accounts that:
- are fully withdrawn
- have a balance below $6,000
- How it may affect your retirement plans.
Be aware of scammers impersonating the ATO, requesting personal identifying information, contacting you and charge for services that are free, like gaining early access to your superannuation. If you receive a phone call, text message or email offering to help you release your super early, do not provide your personal information or click on any links.
For more information
If you are unsure how this affects your superannuation contact us on 03 9838 3055.
This information is for general information only and does not constitute financial advice or take into account your personal needs, objectives and financial situation. Before making any decisions, we recommend you seek professional advice.