Coronavirus Early Access to Super
Updated 23 July 2020
The Australian Government has announced an extension to the application period for the COVID Early Release of Super Scheme from 24 September 2020 to 31 December 2020, increasing the scope for individuals who may still be financially impacted by COVID-19.
Eligible Australian and New Zealand citizens and permanent residents are able to commence applications for the second wave of the scheme, accessing up to a further $10,000 of their superannuation in respect of the 2020-21 financial year, between 1 July 2020 - 31 December 2020.
Temporary residents are not eligible to access their superannuation under the second wave, in the 2020-21 financial year.
Australian and New Zealand Citizens and permanent residents
To apply for early release you must satisfy any one or more of the following requirements:
- you are unemployed; or
- you are eligible to receive a job seeker payment, youth allowance for jobseekers or parenting payment (which includes the single and partnered payments), special benefit or farm household allowance; or
- on or after 1 January 2020:
- you were made redundant; or
- your working hours were 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 per cent or more.
How to apply
If you are eligible for this new ground of early release, you can apply directly to the ATO through the myGov website. You will need to certify that you meet the above eligibility criteria.
After the ATO has processed your application, they will issue you with a determination. If your application is successful, the ATO will also provide a copy of this determination to your superannuation fund, which will advise them to release your superannuation payment.
Separate arrangements will apply if you are a member of a self-managed superannuation fund (SMSF).
People accessing their superannuation will not need to pay tax on amounts released and the money they withdraw will not affect Centrelink or Veterans’ Affairs payments.
How much could taking $20,000 now cost you in the future?*
In the long-term your retirement may be impacted
Most superannuation balances have reduced as a result of falling share markets globally. Accessing your super savings after a drop in value locks in those losses, limiting the ability to recoup when, as we hope occurs, the markets make a recovery. This may be to the detriment of your long-term retirement savings.
*Calculations are the potential impact on your retirement balance using the following assumptions - Investment earnings of 3% per annum after inflation and investment fees, annual asset based admin fee of 0.11%, retirement age of 67, current tax and superannuation laws remain unchanged and the member withdrawing $20,000 from their account. The impact on retirement balance shown in the graph is an estimate only. Under certain conditions you may be eligible to access up to $10,000 in 2019-20 and a further $10,000 in 2020-21 from your super account. Visit www.ato.com.au for terms and conditions.