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Ray Breslin • Apr 07, 2020
Temporary Early Release of Superannuation - When Can I Apply? Everything You Need to Know
On 22 March 2020, the Australian Government announced its economic support package to help Australians who are under financial stress as a result of Coronavirus. This legislation has now passed.
The Government is allowing eligible Australians to apply to withdraw up to:
- $10,000 of their superannuation in financial year 2019-20 (before 1 July 2020)
- plus up to a further $10,000 in financial year 2020-21 (from 1 July until 24 September 2020).
Am I eligible?
The Government has confirmed that 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
- you were made redundant; or
- your working hours at the time you make the application have been reduced by 20 per cent or more compared to the second half of 2019; 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 at the time you make the application compared to the second half of 2019.
Are Temporary Residents allowed to access their super?
Australian citizens and permanent residents are eligible to apply for the scheme. New Zealand citizens, with Australian held super, are also eligible.
On 4 April 2020, it was announced that in line with changes being made for Australian citizens and permanent residents, most temporary visa holders with work rights will now be able to access their Australian superannuation to help support themselves.
Where can I apply?
- You can apply for early access to your super through myGov from Monday 20 April 2020.
How do I apply?
- You can register your interest with the ATO now by logging in to your myGov account and following the ‘Intention to access coronavirus support’ instructions.
- The ATO will then notify you by email or SMS when applications for early access open.
- If you don’t already have a myGov account, you can set one up by selecting 'Create an account'.
As part of the application, you will be required to input the bank details you would like the money paid into and you will need to authorise the ATO to provide it to your super fund to release the money into that account.
How long will it take my super fund to receive the notification from the ATO?
- If you have your super with Essential Super or Colonial First State (CFS), it will take 1-2 business days for your notification to be received by your super fund once the ATO has approved it.
Do I need to contact Essential Super or CFS?
- No, you do not need to contact Essential Super or CFS as part of this process.
How can I check Essential Super or CFS have my correct bank details?
- You do not need to contact Essential Super or CFS to provide your bank details or confirm your current bank details in this instance because your super fund will use the bank details provided by the ATO.
What documents do I need to provide to prove my identity?
- As this process is completed by the ATO any identification requirements will need to be provided to the ATO. You do not need to provide Essential Super or CFS with any proof of identification documents as part of the application process.
What are the tax implications for accessing my super under Coronavirus Compassionate Grounds?
- People accessing their superannuation early in this circumstance will not pay tax on amounts released and the money they withdraw will not affect Centrelink or Veterans’ Affairs payments.
What if I don’t use the whole amount of money I withdraw?
- You will be free to recontribute any unused amounts to your superannuation in the future (within contribution caps) if you are eligible.
How many coronavirus early release of super claims can I make?
- The Government has confirmed that members will only be permitted to make one compassionate grounds claim (even if the member holds multiple funds) under Coronavirus this financial year 2019-20. You will also be able to make another claim from 1 July 2020 until 24 September 2020 if you are still eligible. After this date you will not be able to submit any further claims.
I want to apply for $10,000 to be released but have less than this amount in my super account. Can I still apply for $10,000?
- No. Individuals can only make one application per financial year, to a maximum of $10,000 across all super funds.
For example, if you had two super accounts with $5,000 in each, you will be able to claim $5,000 from each fund at the time you make the application.
Source: https://www.commbank.com.au/latest/super-access.html?ei=superannuation
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