From mid April employees or Sole Traders will be able to draw up to $10,000 from their Super in 2019-2020 and a further $10,000 in 2020-2021 if their income or turnover has been cut by more than 20% compared to the previous 6 month average.
The government has recognised that the those financially impacted by the Coronavirus may benefit more from accessing their superannuation now than they would saving it for retirement.
Eligible individuals will be able to apply through myGov to access up to $10,000 of their superannuation before 1 July 2020. They will also be able to access up to a further $10,000 from 1 July 2020 for approximately three months (exact timing will depend on the passage of the relevant legislation).
To apply for early release you must satisfy any one or more of the following requirements:
- you’re unemployed
- you’re 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
- you were made redundant
- your working hours were reduced by 20 per cent or more
- if you’re a sole trader, your business was suspended or there was a reduction in your turnover of 20 per cent or more.
People accessing their superannuation will not need to pay tax on amounts released and the money they withdraw will not affect Centrelink or Veterans’ Affairs payments.
You’ll be able to apply for the release of your super from 20 April 2020 up until September 2020 (Subject to legislation change).
How To Apply:
Apply directly through the Australian Taxation Office (ATO) using the MyGov website. You can register your interest now by following the intention to access coronavirus support instructions.
Australian Taxation Office (ATO) will notify you by email or SMS when applications open.