The government is allowing individuals affected by the Coronavirus to access superannuation in financial years 2019-20 and 2020-21. If you are unemployed, working hours were reduced more than 20% or already receiving certain benefits from Centrelink, you may eligible to access your super.
Members can access up to $10,000 from their superannuation before 30 June 2020 and a further $10,000 between 1July-2020 and 24 September-2020. Eligible temporary residents can access up to $10,000 of their super before 1July 2020.
How do you apply
This is a simple(ish) process to follow through mygov. Members would need to login to their myGov account and register their interest in early access to super. They can submit one application for each financial year.
If members would like to withdraw from multiple super accounts, the ATO may deploy the application form through their mygov account, where members can specify the amount up to $10,000 and which super accounts they wish to access.
If the fund is an SMSF
Once an application is approved, the ATO will issue an approval letter or a determination. This letter will be available in the mygov inbox within 2-3 days. The confirmation letter should be provided to the fund administrator, adviser or accountant for record keeping.
Members do not have to pay any tax on COVID-19 Early Release of Super and it will not be counted towards assessable income in an individual’s tax return.
Impact on Insurance
Early release of super may have an impact on current insurance, for example, default insurance may lapse if a fund’s balance falls below $6,000. Naturally we recommend speaking with an advisor first if members are concerned.
Please visit ATO for further details: Ref: https://www.ato.gov.au/Individuals/Super/In-detail/Withdrawing-and-using-your-super/COVID-19-early-release-of-super/#Assessingyoureligibilityaccurately