Early access to superannuation

Eligible individuals affected by the coronavirus will be able to apply online by mid-April 2020 for early release of their superannuation up to $10,000 before 1 July 2020. They will also be able to access up to a further $10,000 from 1 July 2020 for approximately three months (exact timing will depend on the passage of the relevant legislation).

To apply for early release you must satisfy one of the following requirements:
• you’re unemployed
• you’re 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
o you were made redundant
o If You are an employee & your working hours were reduced by 20% or more
o if you’re a sole trader , your business was suspended or there was a reduction in your turnover of 20% or more.

A sole trader is a self-employed person who owns and runs their own business as an individual include, electricians, gardeners, plumbers ,Uber drivers, Taxi drivers, , decorators and plasterers etc. in general who are all traditional trades and easy for a skilled tradesman to operate. They will mainly work on word of mouth marketing and work for domestic households.

People getting superannuation will not pay any tax on this amount, nor getting this amount will affect any of their other payments like Centrelink Payments, Veterans Affairs Payment.

Separate arrangements will apply if you are a member of a self-managed superannuation fund (SMSF). Further guidance will be available on the ATO website.

How to Apply:
This application can be done through myGov account directly to the Australian Taxation Office (ATO). ATO will process and advise your fund to make payment to your bank account. Please ensure your details with your superannuation fund is up to date.

Disclaimer: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.

Sources ATO & Australian government Business Website