COVID-19 ECONOMIC RESPONSE: TEMPORARY EARLY ACCESS TO SUPERANNUATION

24 March 2020

 

Temporary early access to superannuation is an integral measure of the Government’s Economic Response package to the coronavirus.  In providing this relief, the Government recognises that early access to some super benefits for those significantly affected financially may outweigh the advantages of preserving these benefits until retirement. 
The measure
Eligible individuals will be able to access up to $10,000 of their superannuation before 1 July 2020.  They will also be able to access up to $10,000 from 1 July 2020 for approximately three months (exact timing will depend on passage of relevant legislation).  Individuals 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.
Application commencement
Applications can be made from mid-April 2020.
Eligibility
To be eligible, the applicant individual has to satisfy any one or more of the following requirements:
is unemployed; or
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:
- has been made redundant; or
- the working hours were reduced by 20% or more; or
- if the applicant is a sole trader, the business was suspended or there was a reduction in your turnover of 20% or more.
How to Apply
Separate arrangements apply to self-managed super funds, to be determined by the ATO.  The ATO has not yet published details of this process.
The following procedures apply to regulated super funds other than SMSFs.  Application has to be made directly to the ATO through the myGov website: www.my.gov.au . The applicant has to certify that they meet the eligibility criteria.  
The ATO will process the application and make a determination.  The ATO will also provide a copy of this determination to the super fund which will release the benefits to the applicant member. It is not necessary to apply directly to the super fund.
Meanwhile, the applicant can contact their super fund to ensure their member records including current account details are correct and proof of identity document in place, to facilitate payment to be made as soon as possible.
SUPERCentral news will provide update on SMSF temporary early access procedures as soon as they are available.

Temporary early access to superannuation is an integral measure of the Government’s Economic Response package to the coronavirus.  In providing this relief, the Government recognises that early access to some super benefits for those significantly affected financially may outweigh the advantages of preserving these benefits until retirement. 

 

The measure

Eligible individuals will be able to access up to $10,000 of their superannuation before 1 July 2020.  They will also be able to access up to $10,000 from 1 July 2020 for approximately three months (exact timing will depend on passage of relevant legislation).  Individuals 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.

 

Application commencement

Applications can be made from mid-April 2020.

 

Eligibility

To be eligible, the applicant individual has to satisfy any one or more of the following requirements:

  • is unemployed; or
  • 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:

- has been made redundant; or

- the working hours were reduced by 20% or more; or

- if the applicant is a sole trader, the business was suspended or there was a reduction in your turnover of 20% or more.

 

How to apply

Separate arrangements apply to self-managed super funds, to be determined by the ATO.  The ATO has not yet published details of this process.

The following procedures apply to regulated super funds other than SMSFs.  Application has to be made directly to the ATO through the myGov website: www.my.gov.au. The applicant has to certify that they meet the eligibility criteria.  

The ATO will process the application and make a determination.  The ATO will also provide a copy of this determination to the super fund which will release the benefits to the applicant member. It is not necessary to apply directly to the super fund.

Meanwhile, the applicant can contact their super fund to ensure their member records including current account details are correct and proof of identity document in place, to facilitate payment to be made as soon as possible.

SUPERCentral news will provide updates on SMSF temporary early access procedures as soon as they are available.

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