How Super Release Works

COVID19/ Corona Virus Superannuation Release

The Australian Government announced that some Australians will be able to withdraw from their superannuation tax free.

When and how much?

The Government is allowing affected individuals to access up to $10,000 of their superannuation before 1 July 2020. They will also be able to access up to a further $10,000 from 1 July 2020 until 24 September 2020.

Who can access it?

  • unemployed people

  • People on the following Centrelink benefits or those eligible but not yet receiving them:
    - Jobseeker payment (Newstart)
    - youth allowance for jobseekers,
    - parenting payment (which includes the single and partnered payments),
    - special benefit; and
    - farm household allowance.

  • On or after 1 January 2020, either you were made redundant your working hours were reduced by 20% or more if you are a sole trader, your business was suspended or there was a reduction in your turnover of 20% or more.

How can you process your payment?

All payments should be requested through your myGov website.

Details should be accessed through this ATO page about early access to your super.

For those who are unable to access online services, the individual will be able to call the ATO, confirm their identity and complete the application over the phone.

What if I have multiple superannuation accounts?

  • The ATO will allow you to review a list of open accounts you have and the last account balance reported for that account (in most cases that is 30 June 2019)
  • You will then need to input the amount you would like to release from each account (there are no limitations on what the individual can input only that in total the amount can’t exceed $10,000)

How long will it take?

  • It will take approximately 1 to 2 business days for the fund to receive notifications about their members. Funds can expect to start receiving notifications from Tuesday 21 April 2020.

WARNING

If you withdraw your superannuation savings, your valuable insurances may lapse. This insurance could be hundreds of thousands of dollars.

Check if you have insurances in your fund that will replace your wages or provide you with large lump-sums if you are unable to work BEFORE YOU WITHDRAW. We can also do this for you if you need us to.

If you have an existing medical condition and you already find it hard to work, or if you have been diagnosed with an illness and you continued to work, you should get in touch with us at ClaimRight for a free factual report into what you currently have before you make any withdrawals.

Fun fact: Did you know if you stopped working due to illness or disability you can claim any insurance you owned, even if the account is closed? Get in touch to find out more.

Other considerations:

William Johns our founder and a qualified financial planner who operates Health & Finance Integrated says you must understand the following issues:

1. Impact on Centrelink benefits

2. That you may be selling valuable superannuation investments before they recover from recent down-turn. Selling and withdrawing is locking in your losses (or gains).

3. Tax implications of sales of your investments within superannuation

4. Long term impact of withdrawing from your retirement savings now

5. Minimum account balance requirements.

6. Insurances that may be cancelled due to insufficient superannuation balance.

Health & Finance Integrated is a Corporate Authorised Representative of Australian Unity Personal Financial Services Limited (ABN 26 098 725 145) AFSL 234459, 114 Albert Road South Melbourne VIC 3205. The advice here is general in nature and does not take into account your personal circumstances and as such you need to make your own enquiries. We recommend you seek financial advice before making any decisions.

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