Temporary Early Release Of Superannuation

You may have seen that the Federal Government announced a temporary measure allowing you early release of part of your superannuation balance if you have been impacted by coronavirus.

So what do you need to know?

Firstly and most importantly, if you don’t need the money urgently, keep in mind that taking money out of your super will impact your retirement goal and we strongly suggest a financial planning consultation, should you wish to make this withdrawal.

If you are eligible, you can apply to access up to $20,000 form your superannuation account tax free – $10,000 on or before 30 June 2020 and another $10,0000 from 1 July 2020 until 24 September 2020. Should you be experiencing financial hardship and wish to make a withdrawal, you will need to satisfy one of the following to be eligible:

• are unemployed
• are eligible to receive a jobseeker 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, there were either:
  • made redundant, or
  • had their working hours reduced by 20% or more, or
  • are a sole trader whose business has been suspended, or there was a reduction in their turnover of 20% or more.

To apply, from Monday 20 April 2020, you can log in to myGOV and complete the application form available on ATO Online or call the ATO and complete their application over the phone.

It is important to ensure you have:

1. your bank details ready as they’ll be required during the application process
2. enough available cash in your account for the withdrawal
3. determined if you should submit a notice to claim a tax deduction on personal contributions you may have made over the current and most recent financial years
4. checked your myGov is displaying your current superannuation account correctly.

If you have any questions about this information or would like to discuss this further with one of our financial advisers, please book in a time.