The Government released the Economic and Fiscal update on 23 July which included previously announced measures that were amended or reconfirmed.
Extension of Early Release of Super (Corona virus) Application Period
Access to superannuation for eligible individuals under the financial hardship – Coronavirus condition of release will be extended. Currently, applications to have an amount released in 2020/21 need to be made by 24 September 2020. However, the application period will be extended to 31 December 2020.
An amount up to $10,000 may be accessed up until this date by eligible Australian and New Zealand citizens and permanent residents.
The superannuation regulations will need to be amended to support this measure.
For more information about this temporary condition of release and the application process, see the links below from MLC.
- KnowHow: How to apply for early access – coronavirus
- KnowHow: Compassionate grounds – coronavirus
- KnowHow: How to rebuild super after early access
Other Superannuation Measures
The update also included the following measures, some of which had been previously announced:
- The Government intends to legislate the previous proposal to increase the maximum SMSF membership limit from four to six. The commencement date will be after Royal Assent.
- The start date of the Retirement Income Covenant will be deferred to 1 July 2022. This relates to superannuation fund trustees being required to consider retirement income needs for members.
- Amendments will be made to the Treasury Laws Amendment (Reuniting More Superannuation) Bill 2020 which is currently before Parliament. The changes include deferring the commencement dates of various amendments which includes ceasing the operation of eligible rollover funds.