Australians have just three days left to claim $10,000 of their superannuation, after the Federal Government extended the cutoff for COVID-19 hardship applications for early withdrawals to 31 December.
The original early access to super scheme allowed Aussies to withdraw two lots of $10,000 from their super: one before 1 July 2020, and one after. The deadline for the latter was previously 24 September.
Applications will close at 11.59pm AEDT on 31 December 2020.
Here’s what you need to know.
Can I access my superannuation early?
To be eligible to access your super early, you must be a permanent resident or citizen of Australia or New Zealand.
One of the following circumstances must also apply:
You are unemployed;
You are eligible to receive one of the following:
Farm Household Allowance
On or after 1 January either:
You were made redundant
Your working hours were reduced by 20 per cent or more
You were a sole trader and your business was suspended or there was a reduction in turnover of 20 per cent or more.
How do I access my super early?
You can apply to access your super early through ATO online services on myGov.
On the application form, you can request to release super from up to five superannuation accounts, but the total must be only $10,000.
For example, you can request to withdraw $5,000 from one super fund, and $5,000 from another. However, you don’t need to request the full $10,000.
Here’s a step-by-step guide:
Go to myGov, then access the ATO service portal;
Click on the ‘view’ button under the COVID-19 banner;
Click ‘apply’ under the ‘Early release of superannuation’ banner;
Click ‘apply’ in black;
You’ll then need to show you are eligible for the release, which includes showing you are a citizen or temporary resident, providing a reason, and specifying how much you want to access;
The ATO will issue you with a “determination” – a decision on your eligibility;
If you are eligible, the ATO will send that determination statement to your super fund, advising the fund to release your payment;
The fund will then make the payment to you “without you needing to apply to them directly”.
When will I get my super after I’ve applied?
According to the Australian Taxation Office, it can take up to four business days to process the application and send you an outcome letter to your myGov inbox.
If you have an APRA-regulated fund and your application is approved, you don’t need to do anything. Your super fund will make the payment to you automatically.
You can expect to receive your payment within five business days, but it could take longer depending on whether your super fund needs more information from you.
If you have a self-managed super fund, you will need to let them know that you have received the letter of approval from the ATO so they can make the payment to you.