Am I eligible to access my Superannuation in light of the COVID-19 outbreak?

As a result of increased unemployment levels and the financial pressure being felt by many Australians, the Government recently announced that individuals can access up to $10,000 of their superannuation in the period up to 30 June 2020 and a further $10,000 in the period from 1 July 2020 to 24 September 2020.

We are certainly experiencing unprecedented times both in Australia and globally in light of the COVID-19 outbreak.

If you are thinking of accessing your superannuation, here are some things you should know:

If eligible, you will be able to access your superannuation entitlements from mid-April.
You will not need to pay tax on the funds withdrawn, nor will they affect Centrelink of Veterans’ Affairs payments.
You can apply online through the myGov website. You do not apply through your super fund.
To apply, you must satisfy one (or more) of the following requirements:

You are unemployed;
You are eligible to receive a job seeker payments, youth allowance for jobseekers, parenting payment (which includes the single and partnered payments), special benefit or farm household allowance.
On or after 1 January 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.

Before you make the decision to access your super entitlements early, you should consider:

Whether it is absolutely necessary for you to do so. The long-term financial impact of withdrawing your super entitlements during a falling market, particularly for younger Australians, can be significant. By withdrawing funds now, you could potentially miss out on compounding interest of between 5% - 7% on that investment for the next 20 or 30 years.
What other options for financial relief are available to you, such as Government benefits or allowances.

We recommend you speak to a financial advisor or accountant regarding the options available to you and the potential long-term impact of withdrawing your super entitlements now. At Coote Family Lawyers, we have a number of specialist financial advisors and accountants who we regularly consult with should you require specific financial advice during this challenging time.

Coote Family Lawyers are recognised as one of the top family law firms in Melbourne. Call us on 03 9804 0035 to speak with someone now.

Call Coote Family Lawyers today on 03 9804 0035.

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