The Government is allowing individuals affected by the Coronavirus to access up to $10,000 of their superannuation
What is the change?
On 23 March 2020, the Government legislated a stimulus package in response to the Coronavirus Pandemic. As part of the package, the Government is allowing individuals affected by the Coronavirus 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 and the money they withdraw will not affect Centrelink or Veterans’ Affairs payments.
Things to consider before applying for early release of your super
Superannuation is intended to help you save for your retirement. It is important to consider the possible impact early access to your super benefits. We recommend you speak to a financial and/or tax adviser before making an application with the Australian Taxation Office (ATO).
Do you have insurance as part of your super?
If you withdraw money from your super your insurance cover will cease if your account is closed or there is insufficient funds pay the monthly insurance premiums. If you wish to retain your insurance, consider leaving sufficient funds to pay the monthly premiums. Once your insurance is cancelled, you cannot apply for reinstatement or apply for new insurance under your ARC Super account. You can view your account balance by logging into your online account at www.arcmt.com.au
Are your eligible for other financial support?
In addition to the option for early release of your superannuation the government has announced a range of support options for individuals during the Coronavirus Pandemic. Before you apply to access your super early, it might be worth reviewing if you’re eligible for any other forms of support; more information can be found at treasury.gov.au/coronavirus/households
Your bank, utility and other service providers may also be providing short term financial hardship measures to assist customers experiencing financial difficulties due to COVID-19.
To apply for early access of your super, you must saisfy one or more of the following requirements:
• you’re unemployed
• you’re 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
or, on/after 1 January 2020:
• you were made redundant, or
• your working hours were reduced by 20% or more, or
• if you are a sole trader, your business is suspended or there was a reduction in your turnover of 20% or more.
If eligible, you can apply through MyGov website www.my.gov.au. You cannot apply through TAL or ARC Super. The Government has indicated applications will be open from 20 April 2020.
What you need to do
If you would like to make an application, please apply directly to the Australian Taxation Office (ATO) through myGov website www.my.gov.au
During the rapidly changing events surrounding the Coronavirus Pandemic, be alert and vigilant of scammers and fraudsters trying to take advantage of the situation. Individuals or companies may offer assistance in your application. Scammers may pretend to be from your super fund or the ATO and seek personal details, including your superannuation fund and/or bank accounts details. If you are contacted, receive a suspicious email or phone call, it is unlikely to be genuine.
Always log into your online account via www.arcmt.com.au and ensure all your details are up to date and change your password if necessary. Never provide your super fund and/or bank details to any unknown callers.