The Government has allowed early release of Superannuation, 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.
The best thing is, that individuals will not need to pay tax on amounts released and it won’t affect payments such as Centrelink or Veteran Affairs payments. The dates the Government has imposed for the first amount you can apply from mid-April up to before 1st July 2020, the further $10,000 you can access from 1st July 2020 until 24th September 2020, after that it will not be available.
So, there are a couple of requirements though, they are:
- If you are unemployed
- You are eligible to receive a job seeker payment, youth allowance, parenting payment (including those on single and partnered payments) special benefit or farm household allowance.
- Or you have been made redundant
- Your working hours have been reduced more than 20% or more
- If you are a sole trader and your business has either suspended or there was a reduction in your turnover of 20% or more
But is it wise to actually access your superannuation? It really comes down to case by case, but remember, once it’s taken, that $20,000 will take some time to build again into your Superannuation fund, so it’s food for thought.
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