Due to the COVID – 19 pandemic, the Australian government earlier this year announced that Australians experiencing financial stress due to the coronavirus outbreak may be eligible to early access of their
superannuation. The temporary announcement will allow superannuation account members to access up to $10,000 of their money this financial year, and a further $10,000 after 1 July 2020 (until 30 June 2021). These funds would not be taxed after they are withdrawn.
The ATO states that to apply for early release, “you must satisfy any one or more” of the following requirements:
- Australians experiencing financial stress due to the coronavirus outbreak may soon be able to access a portion of their super
- Be unemployed
- Be eligible to receive a job seeker payment, youth allowance for jobseekers, parenting payment (which includes the single and partnered payments), special benefit or 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
Since the announcement, data compiled by the ATO confirmed there has been approximately 2.12 million Australia’s who have accessed their super early, with the average withdrawal payment totalling $7,473. In total, APRA figures confirm roughly $14.8 billion has been withdrawal from the retirement scheme.