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Early access to super FAQs

Economic Response to COVID
April 2, 2020

Early access to super FAQs

Q: I am an international student, am I eligible to apply for early access to super?

A: Yes, at this stage, temporary residents and international students who has been more than 12 months are eligible to apply for early access tPlease follow the link below https://www.ato.gov.au/Super/APRA-regulated-funds/In-detail/APRA-resources/Coronavirus—early-release-of-superannuation-industry-consultation-24-March-2020/?fbclid=IwAR1xUWHPLGUvHPmOgspGCH_sRNLs4uH5Y7yzz7-aBdA8mT63lfO9BFpMRx8

Q: How much fund can we access?

A: Given you have enough balance in your fund, you can access as much as $ 10,000 by this financial year (i.e. 30 June 2020). Furthermore, by 1st July, you can access up to additional $ 10,000 given there is remaining balance in your fund.

Q: How much tax is deducted when we access the fund?

A: No tax is payable in these funds when withdrawn and it will also not affect Centrelink or Veterans’ Affairs payments, if anyone falls under this.

Q: When can I apply?   

A: You will be able to apply from 20 April 2020 onwards.

Q: How do I apply?

A: In order to access the super, you need to set up myGov account http://www.my.gov.au/ . If you have already done so, you need to wait until further instruction by the Government.

Q: Do I need to apply separately to my super fund too?

A: No, once you apply, ATO will issued you with a determination.  Then after, ATO will also notify your relevant superfund to release the fund directly to you.

Q: Is there any eligibility criteria to the access?

A: Yes, in order to be eligible for early access to super, ANY of the below conditions need to be met:

  • You are unemployed; or
  • You receive eligible job seeker payment, youth allowance, parenting payment or special benefit or farm household allowance; or
  • On or after 1st January 2020
    • You were made redundant; or
    • Your working hours are reduced by 20% or more; or
    • Your income has decreased by 20% or more

Q: Can I access more than $ 10,000?

A: No, at this stage, you cannot access more than $ 10,000 before 30 Jun 2020. However, from 1st July onwards, you are eligible to access additional $ 10,000 given there is enough balance in the fund.

Q: Can I access less than $ 10,000?

A: Yes, it’s completely at your discretion on how much you want to withdraw as long as it is less than $ 10,000. However, you can only withdraw once before 30 June 2020 and also, you cannot withdraw more than $ 10,000 on or after 1st July 2020. So do a proper estimate before you withdraw your fund as your withdrawals frequency and amount are restricted as stated above.

Q: I have more than 1 super fund, how do I apply for early access?

A: As stated earlier, once you submit the application, ATO will issue you a determination and notify relevant Superfund to disburse you a total of $ 10,000 or whatever amount you have requested. If one super fund balance is not sufficient for the release of fund, ATO will then apply this to other Superfund accounts.

For further detail on the treasury factsheet, please follow the link: https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Early_Access_to_Super_2.pdf

The information provided on this page is general in nature only, only for guidance purpose and does not constitute financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information on this website you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.

3 Comments

  1. Phoebe says:

    I wanted to ask you a question regarding the aftermath of early superannuation release. I am an international student and my superannuation fund is around 13 months old. I have collected around 3500. If I withdraw this amount now, how would it affect me later ?
    I couldn’t understand the informations provided on websites about loss during retirement. However, I dont plan to stay more than 5 more years in Australia.
    What’s the best I can do?
    Do I release the super now and just leave?

    • Mannie says:

      Hi Phoebe,

      I am replying you the inquiry you have submitted regarding early release of super.

      I have compiled a short commentary on the consequence of early super release. Please go through this as this is for information purpose only.

      https://expertaccountants.com.au/2020/04/23/potential-consequences-of-early-release-of-super/

    • admin says:

      Apologies for the delayed reply Phoebe,

      The implications of early release of super are far fetched but given you are not planning to stay here more than 5 years, I would suggest you the following:

      Implications of accessing your super early
      Accessing your super early will affect your super balance and may affect your future retirement income.

      Withdrawing superannuation may also affect your:

      income protection insurance
      life / total permanent disability insurance cover
      Insurance may not be available on accounts that have a low balance.

      The above applies as when your super balance goes below certain $$, these insurance would be cancelled and which might leave you vulnerable.

      You should consider whether you need to seek financial advice before submitting your application for early release of super. Services Australia’s Financial Information Service OfficersExternal Link can give you free, confidential financial information

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