The Government will allow eligible individuals affected by the Coronavirus to have up to $10,000 released from their superannuation or retirement savings account on compassionate grounds before 1 July 2020. A further amount of $10,000 may be withdrawn for the period 1 July 2020 to 30 September 2020.
An individual is eligible for early release if they satisfy any one or more of the following requirements:
Amounts released from superannuation under this temporary measure are tax-free and the amount withdrawn will not affect Centrelink or Veterans’ Affairs payments.
How to apply
Individuals will be able to apply online directly to the ATO through their myGov account (www.my.gov.au) for early release of their superannuation from 20th April 2020. Individuals will need to certify that they meet the above eligibility criteria.
An application for release must be made by 24 September 2020.
Individuals will self-assess their eligibility and be able to apply through the ATO online services on myGov. An applicant may specify the amount they wish to have released and the superannuation entity from which the amount is to be released.
Only one application per period is permitted.
Once the ATO has processed the application, they will issue the individual with a determination via myGov.
A copy of the determination will be sent to the individual’s superannuation fund, which will advise them to release the superannuation payment.
The fund will then make the payment to the individual without them needing to apply to the fund directly. However, to expedite payments, it would be prudent for individuals to immediately ensure that the fund has the correct details, including current bank account details and proof of identity documents.
Where the individual is a member of a SMSF, the individual may use the determination issued to them as the authority for release of the funds from the SMSF.
Caution for SMSF members. Do not act before you have received the determination from the Commissioner.