The stimulus legislation amends the SIS Regulations and RSA Regulations to allow individuals affected by Coronavirus to have up to $10,000 released from their superannuation or retirement savings account on compassionate grounds.
Each person is permitted to have up to two releases – one for an application made during the 2019-20 financial year and another for an application made during the 2020-21 financial year. The amounts that are released are not subject to tax.
From mid-April eligible individuals will be able to apply online through myGov to access up to $10,000 of their superannuation before 1 July 2020. They will also be able to access up to a further $10,000 from 1 July 2020 until 24 September 2020.
The legislation states that to apply for the determination for such early releases, the person must satisfy any one of the following requirements about their employment or business status.
At the time the person applies for the determination, they are:
- eligible to receive a Jobseeker payment, Youth Allowance, Parenting Payment (which includes the single and partnered payments) or special benefit under the Social Security Act; or
- eligible to receive the Farm Household Allowance; or
On or after 1 January 2020 the person:
- was made redundant;
- their working hours were reduced by 20% or more; or
- if the person is a sole trader – their business was suspended or there was a reduction in their turnover of 20% or more.
HAVE YOU MADE YOUR COVID-19 plan?
It is important to note this factsheet does not constitute advice tailored for your individual circumstances and should not be relied on solely for your decision making. You should contact us to discuss your specific individual and personal needs to navigate through the months ahead. New measures are being announced frequently to support individuals and businesses through this period.
We are currently helping clients to make business recovery plans, forecast cashflow and navigate the Government assistance available. Please contact us for any enquiry or call 0403 158 481.