The economic impact of Coronavirus (or COVID-19) has prompted some significant government announcements for both business and individuals to assist people through these difficult times. One of which is the ability to access some of your super. Let’s take a look at what is available, who is eligible and how to apply.
For those significantly affected by the Coronavirus you may be able to access $10,000 of your superannuation savings before 1 July 2020 and a further $10,000 from 1 July 2020 (for approximately 3 months although this may be extended).
To be eligible for this early release you must satisfy one or more of the following:
- You are unemployed or;
- You are eligible to receive a job seeker payment, youth allowance for job seekers, parenting payments, special benefit or farm household allowance or;
- If you are a sole trader – your business was suspended or there was a reduction in turnover of 20 per cent or more.
These payments will be tax free to the recipient and they will not impact any other Centrelink or Veterans’ Affairs payments.
How to apply
To apply simply log in to your mygov account and certify that you have met the eligibility criteria. The ATO will issue a determination to your super fund if deemed successful and your fund will release your super to you.
Should you withdraw your super?
Superannuation is specifically for your retirement. Withdrawing some of your super now can have significant negative impacts to your superannuation balance at retirement. It is therefore important to only utilise this measure if the need to access some of your super today outweighs the benefits of maintaining those savings until you retire. It shouldn’t be used by those that don’t need it.
Contact us here if you require further information or assistance with your application.
|This information has been prepared without taking into account your objectives, financial situation or needs. Because of this, you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation or needs.|