Last Updated: 8 April 2020
Eligible individuals will be able to apply online through myGov to access up to $10,000 of their superannuation before 1 July 2020. They will also be able to access up to a further $10,000 from 1 July 2020 until late September 2020, being six months after the law receives royal assent.
The aim is to provide individuals that are significantly financially affected by the Coronavirus access to funding from their superannuation fund.
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 under the Social Security Act; or
- eligible to receive the farm household allowance under Farm Household Support Act 2014; 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.
There are no applicable income or assets tests.
There is no requirement that the individual is already receiving Commonwealth income support payments and there is no waiting period. The payment can be requested from 20 April 2020 once the new rules come into effect.
The requirements about reductions in a person's working hours or in their turnover as a sole trader are determined by reference to changes that have occurred since 1 January 2020. This requires a comparison of a person's working hours or turnover at the time they make the application and their usual hours prior to 1 January 2020.
It is expected that individuals will self-assess their eligibility to apply for a determination.
Individuals are restricted to a single application in a financial year but can nominate more than one account from which the amounts are to be released.
The ATO will have sole responsibility for administering payments from super under the new compassionate grounds - coronavirus condition of release. There will be no need for a member to contact their super fund directly during the process.
Apply directly to the ATO through the myGov website: www.my.gov.au. You will need to certify that you meet the above eligibility criteria.
Applications will be able to be made from 20 April 2020.
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 as soon as possible, you should contact your fund to check that they have your correct details, including your current bank account details and proof of identity documents.
To access funds from a Self-Managed Superannuation Fund (SMSF), the process is the same. You cannot withdraw funds from your SMSF until you have received a determination from the Australian Taxation Office.
As an SMSF trustee, you are responsible for your and your members' retirement savings. Please make sure you are eligible for early release of super before you release any funds from your SMSF.
Individuals that need financial assistance after a drop-in income.
Amounts released under this new round for early release will be paid tax free and will not affect Centrelink or Veterans' Affairs payment eligibility.
More info: https://treasury.gov.au/coronavirus/households
The Government is moving quickly and things are changing daily with regards to the response to COVID-19.
Should you have any queries regarding this measure or any Government measure announced in relation to COVID-19, please contact our office for more information.
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The information provided in this information sheet does not constitute advice. The information is of a general nature only and does not take into account your individual situation. It should not be used, relied upon, or treated as a substitute for specific professional advice. We recommend that you contact Brentnalls SA before making any decision to discuss your particular requirements or circumstances.