Coronavirus – Early Super Access

Coronavirus – Early Super Access

The Government will introduce a new compassionate ground of release that will allow individuals to access their superannuation entitlements where those benefits are required to assist them to deal with the adverse economic effects of the Coronavirus, but only where one or more of the following requirements are satisfied:

(a) The individual is unemployed.
(b) The individual is eligible to receive the Jobseeker Payment, Youth Allowance for jobseekers, Parenting Payment (which includes the single and partnered payments), Special Benefit or Farm Household Allowance.
(c) On or after 1 January 2020:
the individual was made redundant; or
the individual’s working hours were reduced by at least 20%; or
if the individual is a sole trader – their business was suspended or there was a reduction in the business’s turnover of at least 20%.

Under this new compassionate ground of release, eligible individuals will be able to access as a lump sum, up to $10,000 of their superannuation entitlements before 1 July 2020, and a further $10,000 from 1 July 2020 (but subject to the six-month time frame noted below).

Eligible individuals who are looking to access their superannuation entitlements under the above new ground of release will be able to apply directly to the ATO through the myGov website (at www.my.gov.au) and certify that the above eligibility criteria is satisfied.

An individual will be able to apply for early release of their superannuation entitlements from mid April 2020. However, note that no application may be made after the end of the period of six months from the day on which the new compassionate ground of release commences.

This has been taken from the NTAA document entitled “NTAA Stimulus Package”

No Comments

Post A Comment