Temporary Early Release of Superannuation Now Available

By March 24, 2020Blog, COVID-19

Temporary Early Superannuation Release Due to COVID-19 Crisis

Individuals affected by the COVID-19/Coronavirus crisis may be able to access up to $10,000 of their superannuation in 2019-20 and a further $10,000 in 2020-21. Applications for a temporary early release are to be made through myGov.

What is available and to whom?

The total amount accessible with initiative is $20,000 and for an individual to be eligible for early release they must satisfy one or more of the following: 

  • They are unemployed; or 
  • They 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; or 
  • On or after 1 January 2020: 
  • You were made redundant; or 
  • Your working hours were reduced by 20% or more; or 
  • If you are a sole trader – your business was suspended or there was a reduction in your turnover of 20% or more. 

How do I get it?

Applications are to be made through the myGov website.  Upon successful processing, the superannuation fund will make payment directly to the individual.   

When and how will it be paid?

Applications are set to be available from mid-April 2020 and eligible individuals who access their superannuation will receive these payments tax-free, to be treated as non-assessable, non-exempt income.  This appears to be regardless of the proportion of taxable and tax-free components of an individual’s superannuation interests which must be paid proportionately as a lump sum.  Any withdrawals will not affect Centrelink or Veterans’ Affairs payments. 

SMSFs

A different set of arrangements will apply for members of a SMSF, further guidance will be available once updated. 

For more information please click here. 

Remember, we’re here to help!

Here’s what Advivo is doing to help our clients and friends through these turbulent times and we urge you to please contact us sooner rather than later if you would like any assistance with these.