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COVID-19: Early release of superannuation

April 2, 2020

The ATO has explained how it will administer the measure to allow for early release of superannuation in response to the COVID-19 pandemic.

The ATO will deploy the application form for individuals on Monday 20 April. An individual can make one application in the 2019-20 financial year and one application in the 2020-21 year before the measure ends on 24 September 2020. The application is accessed in one of two ways:

  • members can authenticate themselves through myGov and complete the application form in ATO Online
  • members who cannot access the form online can call the ATO to complete the application.

It will take approximately one to two business days for the fund to receive notifications about their members. Funds can expect to start receiving notifications from Tuesday, 21 April.

COVID-19 (novel coronavirus) – early release of superannuation

The government is allowing individuals affected by COVID-19 to access up to $10,000 of their superannuation in 2019–20 and a further $10,000 in 2020–21. Individuals will not need to pay tax on amounts released – coronavirus amounts are not taken into account under any income or means tests.

Eligible individuals will be able to apply to access up to:

  • $10,000 of their super before 1 July 2020
  • a further $10,000 from 1 July 2020 until 24 September 2020.

To apply for early release, you must satisfy one or more of the following requirements:

  • You are unemployed.
  • You are 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.

You will not be required to attach evidence to support your application; however, you should retain records and documents to confirm your eligibility.

Withdrawing your superannuation may affect your:

  • income protection insurance
  • Life / Total Permanent Disability insurance cover.