EXPLAINER: Who can dip into their super and how much can you get

super funds

It’s a small win for those feeling the financial pinch from the coronavirus, but every bit helps with so much uncertainty still ahead.

From mid-April 2020, eligible individuals can apply online through myGov to access up to $10,000 of their superannuation, before July 1.

You can then withdraw a further $10,000 of your retirement savings after that date, but only for the next three months or so, at this stage.

You will not need to pay any tax on these amounts, and any money taken out won’t affect any Centrelink or Veterans’ Affairs payments you might already be receiving.

According to the ATO website, to apply for up to $20,000, you must meet one, or more of the following requirements:

  • You are unemployed
  • You 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
  • On or after January 1, 2020, either you were made redundant, your working hours were reduced by 20% or more
  • If you are a sole trader, your business was suspended or there was a reduction in your turnover of 20% or more

For more information, visit my.gov.au where you can also register your early interest in the scheme and get notified when the application process is open.

After the ATO has processed your application it will issue you with a determination. It also give a copy to your fund advising them to release your super payment. Your fund will then make the payment to you, without you needing to apply to them directly.

If you are a member of a self-managed super fund (SMSF) who is eligible, you can also apply through myGov from mid-April. When your SMSF receives the determination from you, they will be authorised to make the payment.

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