Besides other taken measures to help individuals Australian government is allowing early access to your super in very limited circumstances.
You can’t use early access to your super and transfer it into a self-managed super fund. It is illegal and heavy penalties would apply. For more information, about illegal early release of super read here.
Applications for early release of superannuation (super) will be accepted through ATO online services in myGov from 20 April, 2020.
The government is allowing individuals affected by COVID-19 to access up to $10,000 of their superannuation in 2019–20 and a further $10,000 in 2020–21. Individuals will not need to pay tax on amounts released and will not need to include it in their income tax return.
For Australian and New Zealand citizens and permanent residents
Eligible Australian and New Zealand citizens and permanent residents will be able to apply to access up to:
- $10,000 of their super before 1 July 2020
- a further $10,000 from 1 July 2020 until 24 September 2020.
To apply for early release, you must satisfy one or more of the following requirements:
- You are unemployed.
- You are 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, either
- you were made redundant
- your working hours were reduced by 20% or more
- if you were a sole trader, your business was suspended or there was a reduction in your turnover of 20% or more.
For temporary residents
The government has also announced that eligible temporary residents will be able to apply to access up to $10,000 of their super before 1 July 2020.
To apply for early release as a temporary resident, you must satisfy one or more of the following requirements:
- You hold a student visa which 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.
You will not be required to attach evidence to support your application; however, you should retain records and documents to confirm your eligibility.
Warnings
Withdrawing your superannuation may 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.
Consider whether you need to seek financial advice before starting your application.
For more information check ATO website https://www.ato.gov.au/individuals/super/withdrawing-and-using-your-super/early-access-to-your-super/
