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In the wake of the recent COVID-19 pandemic, the Government has allowed early access to superannuation funds for certain groups of people and traders. Although the early access prescription appears easy to follow, there can be cases that fall on the eligibility borderline. The scales weigh more on the side of eligibility rather than the […]
In the wake of the recent COVID-19 pandemic, the Government has allowed early access to superannuation funds for certain groups of people and traders. Although the early access prescription appears easy to follow, there can be cases that fall on the eligibility borderline. The scales weigh more on the side of eligibility rather than the ineligibility side of early access for the applicant. The simple consequence of this misinterpretation could risk an eligible applicant becoming an ineligible one.
The Government would allow early access to the super funds by those affected by the COVID-19 crisis. Basically, an eligible super funds member can withdraw $10,000.00 this financial year which ends on 30 June 2020, and another $10,000.00 next financial year which starts as of 1 July 2020. This is tax-free the Government said. The measure is designed to address the existing hardship on the eligible individuals and traders to whom this new ruling would apply.
If you are still working and it is only your wife who has been made redundant after 1 January 2020, then your wife can only exercise her right of early access to her super funds. To become eligible, She needs to show that either:
Ans: Yes, you can.
Ans: Yes, you can. So far the Government has not set a benchmark for the available funds in a super account. The Government has however defined the maximum that can be withdrawn from the super funds in this and next financial year.
Ans: Providing you meet the individual, or, the sole trader tests above, yes you can.
Ans: Applications are to the ATO via the MyGov website. The process is pretty simple. The ATO will verify the applicant, assess the application, record the bank account details, and make a decision. The ATO will then direct the nominated fund to release the requested amount to the bank account specified by the member. It is essential to know is that the member does not need to contact his/her super funds at all in the process.
Ans: According to the Government, it is estimated that around $27 billion funds might be taken out via early release, however, this is less than 1% of a circa $3trillion superannuation in the system owned by the Australian members.