Members may be able to access up to $10,000 of their superannuation before 1 July 2020 and a further $10,000 from 1 July 2020 until 24 September 2020.
You will only be able to make one request for each financial year. For example, should you nominate for a lesser withdrawal amount in 2019/20, you will not be able to apply again before 1 July 2020 for the remainder nor will you be able to apply for more than $10,000 from 1 July 2020.
If you access your superannuation you will not be required to pay tax on amounts released and any amounts withdrawn will not affect your Centrelink or Veterans’ Affairs payments. These amounts will also not be included in your assessable income for the financial year the withdrawal is made.
To apply for early release of your superannuation, 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, any of the following happened:
- You were made redundant
- You are unemployed
- Your working hours (not salary) were reduced by 20% or more
- You are eligible to receive a job seeker payment, youth allowance for jobseekers, parenting payment, special benefit or farm household allowance
- You were a sole trader and your business was suspended or your turnover decreased by 20% or more.
How to apply to access your superannuation
From 1 April, those affected can register through the myGov website.
If you satisfy one or more of the requirements entitling you to access your superannuation early, you will be able to do so from mid-April.
After applying through myGov, the ATO will issue you with a determination advising of your eligibility to release an amount. Only once your SMSF receives the determination from you, will the trustee be authorised to make the payment. If you apply to access superannuation benefits from a non SMSF, the determination will be issued by the ATO direct to the APRA regulated funds and the trustee will proceed to release your benefits to a nominated bank account.
It is worth noting that this new condition of early release is meant to assist those who are adversely affected by the economic impacts of COVID-19. If members are unsure if they should access their superannuation early please speak to a financial advisor.
If you have any questions around this, or would like to speak with an advisor, please contact the Partners Wealth Group Audit team today, and they will be more than happy to help you.