The Government has recently implemented some temporary changes to the way that individuals can access their super, granting early access to some individuals in response to the impact of the coronavirus outbreak.
Please refer to this Government fact sheet for the most accurate information, and read the following information carefully.
Future Super recommends seeking financial advice, if you are able to, before applying for early release of your super. This will help you make an informed choice that takes into account your personal financial situation. Please also be aware that the National Debt Helpline is a free resource available to those who need it.
In line with these changes, eligible individuals will be able to apply online through the ATO online portal via myGov to access up to $10,000 of their super before 1 July 2020.
Additionally, they will also be able to apply to access up to a further $10,000 from 1 July 2020 until 24 September 2020.
Am I eligible?
To apply for an early release, an individual must satisfy any one or more of the following requirements:
- You are unemployed, or;
- You are eligible to receive a job seeker payment, youth allowance for job seekers, 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
Tax and Centrelink implications
None - people accessing their super will pay no tax on amounts released and the money they withdraw will not affect Centrelink or Veterans’ Affairs payments.
When can I apply?
Applications will open on Monday 20 April, 2020. Please refer to the ATO website for more information.
The application process
Individuals will soon be able to make an application through the ATO online portal via theMyGov website.
The ATO will consider an individual's eligibility for payment and issue a determination to the individual and to their super fund. Payment will be processed following ATO approval of your application. Future Super is not responsible for evaluating your eligibility to receive these early release payments. Further to this, we are only able to release your super in line with what the ATO has told us to release.
Why should I seek financial advice?
Your super is invested in a number of markets. The economic climate in the past month has been highly volatile on account of the COVID-19 outbreak, and the superannuation industry has seen losses as a result. Withdrawing your super at this time could potentially crystallise any losses to your super, so you may want to seek financial advice before considering this pathway, as everyone has different personal financial circumstances.
Further to this, the Government has announced a series of other measures to provide financial assistance to individuals and businesses during this crisis, such as increasing the value of income support payments and introducing new criteria for eligibility for such payments. Please refer to the Department of the Treasury website and the ATO website for further information.
We are currently experiencing a high volume of inquiries regarding these changes to the early access of super. If you have any urgent questions, please get in contact via email at firstname.lastname@example.org. Please also be patient with our Member Advocacy team, who are working their hardest to ensure that all of your enquiries are answered.
This blog post contains general information only and does not take into account any person’s financial objectives, situation or needs. We recommend that you seek professional financial advice tailored to your own personal circumstances before taking any financial action. You should read the Product Disclosure Statement, Additional Information Booklet, Insurance Guide and Financial Services Guide before making any financial decisions regarding the Future Super super fund.