COVID-19 Release of super

If you have been financially affected by COVID-19 you can access up to $10,000 of your superannuation in 2019–20 and a further $10,000 in 2020–21.


You will not need to pay tax on amounts released and the money withdrawn will not be taken into account for any income or means tests.


From 20 April 2020, you can apply online through myGov to access up to

  • $10,000 of your superannuation by 30 June 2020

  • A further $10,000 between 1 July 2020 and 24 September 2020.


The government has also announced that eligible temporary residents will be able to apply to access up to $10,000 of their super before 1 July 2020.



Eligibility

Citizens and permanent residents of Australia and New Zealand

  • You are unemployed.

  • You are eligible to receive one of the following

On or after 1 January 2020 either:

  • You were made redundant

  • Your working hours were reduced by 20% or more (including to zero)

  • You were a sole trader and your business was suspended or there was a reduction in turnover of 20% or more.

Temporary residents

Must be in one of the following circumstances:

  • You hold a student visa that you have held for 12 months or more and you are unable to meet immediate living expenses.

  • You are a temporary skilled work visa holder, your working hours have reduced to zero and you remain engaged with your employer.

  • You are a temporary resident visa holder (excluding student or skilled worker visas) and you cannot meet immediate living expenses.


Implications of accessing your super early

Accessing your super early will affect your super balance and may affect your future retirement income.


Withdrawing superannuation may also 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  • Are fully withdrawn.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.

  • Are inactive low balance accounts.


You should consider whether you need to seek financial advice before submitting your application for early release of super.


MORE INFORMATION:

For the latest advice, information and resources, go to https://www.ato.gov.au/

Feel free to contact us at office@gordondu-associates.com.au or (08) 9345 0499.


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