As a part of the safety net stimulus packages, the government announced that individuals that are adversely effected by coronavirus (COVID-19) can look to an early release of their Superannuation and may be able to access up to $10,000 of their super before 30 June 2020 and another $10,000 from 1 July 2020 until 24 September 2020.
The ATO have recently announced that from mid-April those eligible can apply through myGov. The ATO will issue the individual a determination confirming eligibility. Once the individual provides the determination to the SMSF, the fund will be authorised to make the payment.
Eligibility for Release of your Superannuation
To apply for early release, you must satisfy any one or more of the following requirements:
- Are unemployed.
- 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 – Important to note, this does not include the Job Keeper payment.
On or after 1 January 2020, either
- Have been made redundant
- Have had working hours were reduced by 20% or more
- If you are a sole trader, your business was suspended or there was a reduction in turnover of 20% or more.
Release of Superannuation held in SMSF
As the trustee of your SMSF, you are solely responsible for your retirement savings. Please ensure you are eligible for early release and provide a copy of the determination to your super accountant before you release any monies from your SMSF.
Please be aware that incorrect timing or documentation can result in compliance breaches with severe penalties.