GWA_LOGO_SMALL

What is the best approach to protecting your assets? If wealth preservation and properly safeguarding your assets is important to you, we have the tools that may assist you.

In the event of a family breakup, we have strategies that may reduce your personal income tax burden

We can help you formulate a retirement plan so you can concentrate on your next holiday

Want to keep in control of your SMSF Compliance obligations?

Want to experience the GW&a Difference? Easy as…..pick up the phone and make the call

We can provide you and your business with tax saving strategies.

07 5532 1733
07 5532 1209
info@wilkes.com.au
Menu
img_7873.jpg

Early Release of Super – COVID-19

, , , , , , , , , ,

It’s important that you’re aware of the rules surrounding the early release of Super and how to access it. If you are unsure at any stage of the implications, we encourage you to seek professional advice. The information below is direct from the Tax Office and should provide you with some insight into the early release of your retirement savings. If in doubt feel feel to call our firm or the ATO.

This information is current as at 22 April 2020.

If you have been financially affected by COVID-19, you may be able to access some of your superannuation early.

Eligible citizens and permanent residents of Australia or New Zealand can apply for up to $10,000 in 2019–20 and up to a further $10,000 in 2020–21.

Eligible temporary residents are able to apply once to access up to $10,000 of super in 2019–20.

Applications can be submitted online through myGov:

  • until 30 June 2020 for the 2019–20 year
  • between 1 July 2020 and 24 September 2020, for the 2020–21 year.

You will not need to pay tax on amounts released and will not need to include these amounts in your tax return.

On this page:

See also:

Eligibility

Citizens and permanent residents of Australia and New Zealand

To be eligible for early release of super, a citizen or permanent resident of Australia and New Zealand must be in one of the following circumstances:

  • You are unemployed.
  • You are eligible to receive one of the following  
    • jobseeker payment
    • youth allowance for jobseekers (unless you are undertaking full-time study or are a new apprentice)
    • parenting payment (which includes the single and partnered payments)
    • special benefit
    • farm household allowance. 
     
  • 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

To be eligible for early release of super, 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.

Assessing your eligibility

You do not need to attach evidence to support your application. However, you should keep records and documents to confirm your eligibility as we may ask you for this information.

It is important that you assess your eligibility accurately. We are administering this measure on behalf of all Australians and will manage the eligibility criteria with strict guidelines to ensure we can support those financially affected by COVID-19. There are penalties for making false and misleading statements.

You can’t access your super early for a dependant. If your dependant is financially affected by COVD-19, they must apply themselves.

You can only submit one application for COVID-19 early release of super per financial year. You are still able to apply for COVID-19 early release of super if you have previously accessed your super early in other circumstances.

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. Services Australia’s Financial Information Service OfficersExternal Link can give you free, confidential financial information.

See also:

Before you apply

Before you start the application process, you should:

  • set up your myGov accountExternal Link and link it to the ATO
  • have your Australian bank account information available – you will need this to complete your application and only Australian bank accounts are accepted
  • check your super balance – your actual account balance may be higher or lower than that shown in ATO Online or in the early release application form.

There are four ways you can check your super balance:

  • Check your total superannuation balance in ATO online services. There will be an ‘as at’ or ‘effective’ date for the balance. In a lot of cases, it will be 30 June 2019 as funds are only required to report to us once a year. This means your account balance may have changed since it was last reported to us, and may be higher or lower than shown on ATO online or in the early release application form.
  • If you have access to your super fund’s online member portal, you can log on and check your current account balance there. It might be a good time to establish a login to your fund portal if you haven’t already.
  • Check the last statement that your fund issued to you. This might be by paper or email.
  • Call your fund, but understand that they have had a large increase in members calling and there could be delays in having your call answered.

See also:

Submit an application

Applications for early release of superannuation are accepted through ATO online services via myGov.

You can only submit one application for COVD-19 early release of super in each financial year:

  • 2019–20, between 20 April and 30 June 2020
  • 2020–21, between 1 July and 24 September 2020 (Australian and New Zealand citizens and permanent residents only).

This is even if the total amount you request to be released, or the actual amount released by your fund, is less than $10,000. For example, if you request $8,000, you cannot make another application to request the additional $2,000.

The application form on myGov will display all your superannuation accounts, as reported to us by your funds. You can request the release of your super from up to five super accounts. For example, if you want to receive a total of $10,000 you can request $5,000 from one fund and a second $5,000 from another fund. This must be done within one application form.

Current super balance

We encourage you to check your fund’s online portal to confirm your current accurate balance. Your current super balance may be lower or higher than what is shown in the application form. The amount shown in the form is the amount last reported to us and your fund does not need to report your current balance to us.

You can apply for an amount higher than the balance shown in the application form (up to $10,000), provided your current balance is sufficient. This includes if a ‘nil’ amount is showing in the application form. For example, if you’ve confirmed your fund balance is $8,000, but the amount showing in ATO Online is $0.00 you can still apply for a release up to $8,000.

If you apply for an amount greater than your current balance, your fund will release the amount currently available (up to $10,000). For example, if you request $8,000, but your current balance is only $7500 your fund will release $7500.

Application tips

You can only submit one application for COVID-19 early release of super per financial year. To make the application process as smooth as possible, please check the following information is correct before you submit your application:

  • The amount you request. You should check your current balance through your fund’s online portal to ensure your request is based on the latest available balance.
  • Your Australian bank account details. Only Australian bank accounts are accepted.

You can’t access your super early for a dependant. If your dependant is financially affected by COVD-19, they must apply themselves.

An application can’t be withdrawn or cancelled once it has been submitted. If you no longer want the release of your super, you will need to contact your fund.

Next step:

After you apply

It will take us up to four business days to process your application and send you a letter of approval or rejection to your myGov Inbox.

Once your application is approved you do not need to contact us or your fund. Your fund will make the payment to you without you needing to apply to them directly. The Australian Prudential Regulation Authority (APRA) have issued guidance to super funds and expect payment to be made to members within five business days. However, this time may increase where funds need to contact you to clarify information. More information can be found on APRA’s websiteExternal Link. 

If your fund is a SMSF, you will need to let them know that you have received the determination so they can make the payment to you.

Be aware of scams and schemes

Early access of your super is a freegovernment service to help and support you during the impacts of COVID-19. Be aware of scams and schemes asking you to pay to release your super.

We’re concerned about scams or schemes where people:

  • impersonate the ATO, or a trusted organisation like your super fund, to steal your money or personal identifying information
  • approach you and charge you for services that are free, like gaining early access to your superannuation.

If you receive a phone call, text message or email offering to help you release your super early, do not:

  • provide your personal information
  • click on any links
  • share your myGov login details.

You can phone us on 1800 008 540 to confirm if a contact you received is genuine.

See also:

Need support

We’re here to help. We can work with you when tough times happen, so you can focus on getting your life back on track.

Find out more:

Share This Article With Others

Related Posts