Here are practical key points for you to consider.
There are two opportunities to access super:
Up to $10,000 before 1/7/2020 AND up to additional $10,000 between 1/7/2020 – 24/9/2020
- One application permitted in each period
- Applications are available from 20th April 2020
- Withdrawals will be tax free. No impact on Centrelink.
- Don’t contact your super directly, the applications must be done online via MyGov account (or by phone to ATO)
- Make sure you have set up MyGov account
- You will be able to self-assess for faster processing
- Your ATO MyGov account will display all super in your name – you can elect to claim a portion from each account (say $5K from one and $5K from other)
- If you’re rejected, you’ll be notified in 2-3 days
- No timeframe set for when money will be released BUT
- Normal ID requirements are waived for fast approvals (government intention).
Who is eligible?
- If you’ve been unemployed or eligible to receive Jobseeker Payment, equivalent Youth Allowance, Parenting Payment, Special Benefit or Farm Household Allowance, or
- On or after 1 January 2020, you’ve been made redundant; or had your working hours reduced by 20% or more; or as a sole trader your business was suspended or turnover decreased by at least 20%.
Other important information:
- Due to current market downturn, you’re likely to crystallise loses in your account
- You can always contribute the amount back to super if not used (subject to usual contribution caps)
- Notice of Intent (NOI) to claim tax deduction for the year needs to be send to your super before withdrawal
- Once you receive money, consider keeping withdrawn funds in a suitable account (e.g. offset account)
- Check your insurance benefits and premiums payable, otherwise you can lose your cover.
Our financial planners are here to help you during this unpredicatable time...
Article by Michal Bodi | Senior Financial Planner
General Disclaimer: This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. Please seek personal financial advice prior to acting on this information.