The Federal Government’s Coronavirus stimulus package received Royal Ascent on 24 March 2020 and is now law.
Access up to $20,000 of your Superannuation
Access to superannuation savings has been broadened where you’re in financial distress because
of the Coronavirus and meet certain eligibility conditions.
If eligible, you’re able to access up to $10,000 before 30 June 2020 and an additional $10,000 from 1 July (available until approximately September).
To be eligible, you must meet one of the following conditions at the date you apply:
- you’re unemployed
- you’re eligible to receive Jobseeker Payment, Youth Allowance (jobseekers), Parenting Payment, Special Benefit or Farm Household Allowance:
- on or after 1 January 2020, you were made redundant, your hours of work reduced by at least 20%,
- or if you’re a sole trader, your business was suspended or your turnover reduced by at least 20%.
You’ll also be able to make a withdrawal where you’re an employee of your own company or family trust and your working hours have decreased by at least 20%.
How to apply
- Applications will be through MyGov to the Australian Taxation Office (ATO) and it is expected that claims can be made from mid-April.
- You’ll need to make a declaration that you meet one of the above eligibility requirements.
- You’re also able to nominate how much you’d like (up to the $10,000 limit) and if you have multiple funds, you can also nominate more than one fund from which to draw this amount (up to a maximum of $10,000 in total).
- Once the ATO confirms you’re eligible, it will issue you and your super fund with a determination and the payment will be made to you. If you have a self-managed super fund, arrangements will differ and the ATO is yet to provide those details.
- Payments are tax-free and amounts received will not impact Centrelink or DVA entitlements.
If considering this opportunity, you may wish to discuss it first with your adviser as drawing down on superannuation savings while investment values are depressed may not be the most ideal option.