Early release of superannuation

Updated: 30 Mar, 2020


The government is allowing individuals affected by COVID-19 to access a maximum of $20,000 per member.

Individuals will be able to access up to $10,000 of their superannuation before 1 July 2020 and a further $10,000 from 1 July 2020 until 24 September 2020, a maximum of $20,000 per member.

Eligible members are those:

  • You are unemployed.

  • 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.

On or after 1 January 2020, either:

  • You were made redundant

  • Your working hours were reduced by 20% or more

  • If you are a sole trader, your business was suspended or there was a reduction in your turnover of 20% or more.


How to apply:

Eligible members can apply directly to the ATO through the myGov website. You will need to certify that you meet the eligibility criteria.


Your application will then be handled by the ATO. If it finds you are eligible, it will notify your super fund to release your super payment.


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.


Notification process for funds

  • Funds can expect to start receiving notifications from Tuesday 21 April 2020.

  • The ATO will be providing the details in an electronic data file.

  • Funds will need to download the file via the Bulk Data Exchange (BDE) channel and process the information.

Update on customer verification obligations from AUSTRAC

In response to COVID-19, AUSTRAC will introduce a Rule under the Anti-Money Laundering and Counter-Terrorism Financing Act (AML/CTF).


This Rule will ensure that superannuation funds making payments to their members under this initiative, where the payment is approved by the ATO and processed through MyGov and ATO online, will not have to conduct additional customer verification under the AML/CTF regime.


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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