Covid-19 Super Access $10,000

If you are suffering from financial stress as a result of the coronavirus, you may be eligible to access some of your superannuation.

Generally, you are unable to access your super until you meet a full condition of release, such as retirement or reaching age 65.

The coronavirus pandemic has caused many Australians to lose their jobs, or unable to continue earning an income sufficient to cover living expenses.

The Government understands the situation many people face and will allow temporary access of super.
 

Covid-19 Early Access To Super

 
If you are eligible to access your super under these measures, you will be able to withdraw up to $10,000 prior to 1 July 2020.

Should you remain eligible, you will also have access to a further $10,000 after 1 July 2020 for a limited time (approximately 3 months).

This early access to your superannuation can alleviate some of the financial stress you are facing.

These Covid-19 early access to super provisions are expected to commence from mid-April 2020, with the exact date yet to be detailed.

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Am I Eligible for Covid-19 Early Super Access?

 
To be eligible to access $10,000 of your superannuation early under these circumstances, you need to meet one or more of the following requirements:

• You are unemployed;

OR

• Eligible to receive a:
  • jobseeker payment,
  • youth allowance for jobseekers,
  • parenting payments (including single and partnered payments),
  • special benefit; or
  • farm household allowance.

OR

• On or after 1 January 2020:
  • You were made redundant,
  • your working hours reduced by 20 per cent 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.

Will it Affect My Tax or Centrelink?

 
Accessing your super early due to the coronavirus will not affect or be assessed against any other Centrelink or Department of Veteran Affairs (DVA) payments you might be receiving.

Furthermore, the withdrawals made from super under these circumstances will be received completely tax free.
 

How To Apply for Early Access due to Covid-19?

 
The application for early access is to be made through the MyGov Website.

You will need evidence that you meet the eligibility criteria noted above.

You may be able to contact your superannuation provider for further details, but they will not be able to help you with your claim.

In saying this, it would be a good idea, while the application is being processed, to ensure your super fund has your up-to-date bank details and proof of identity, so that payment is not delayed.

All processing of early release of your super due to coronavirus will be completed through the MyGov portal.

Once you have applied, the ATO will provide you and your superannuation fund with a determination. Only at that stage will your super fund release up to $10,000 of your balance.

You will not need to apply to your fund directly. The payment will be automatically made to you.

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Other Ways To Access Super Early

 
Standard early access to super rules remain in place, including:

• Access on compassionate grounds
• Access due to severe financial hardship
• Access due to a terminal medical condition
• Access due to temporary incapacity
• Access due to permanent incapacity
• Super balance less than $200
• First home super saver scheme

You can read more about the above conditions of release here.