On 22nd March 2020 the Australian Federal Government announced they will amend the rules regarding early access to superannuation due to the economic impact of the Coronavirus.
Eligible individuals will be able to access up to $10,000 before 30 June 2020 and a further $10,000 from 1 July 2020 to 23 September 2020.
To be eligible for early release of your superannuation you must meet one of the following criteria:
- You are unemployed or
- You are eligible for a jobseeker payment, youth allowance for jobseekers, parenting payment, special benefit or farm household allowance or
- On or after 1 January 2020 you
- Have been made redundant
- Have had your working hours reduced by 20% or more or
- Are a sole trader – your business was suspended, or you have had a reduction in turnover of 20% or more
If you are eligible for early release of your superannuation, the payment is tax free and will not affect Centrelink or Veteran’s Affairs payments.
To make a claim you will need to complete a declaration through your MyGov account stating you meet the criteria above. Once accepted, your superannuation fund will receive a determination from the Australian Taxation Office and will then pay your superannuation to you.
You can commence making claims from mid-April.
It is important to note that you will only be entitled to make one claim in each financial year. For example, if you make a claim now for $6,000 you can’t make a second claim for $4,000 before 30 June.