Am I eligible to access my super under compassionate ground – coronavirus?

To be eligible, you must meet one of the following conditions at the date you apply:

• you’re unemployed
• you’re eligible to receive Jobseeker Payment, Youth Allowance (jobseekers), Parenting Payment, Special Benefit or Farm Household Allowance
• on or after 1 January 2020, you were made redundant, your hours of work reduced by at
  least 20%, or if you’re a sole trader, your business was suspended or your turnover reduced
  by at least 20%.

You’ll also be able to make a withdrawal where you’re an employee of your own company
or family trust and your working hours have decreased by at least 20%.

How much can I access under this measure?

If eligible, you’re able to access:

• up to $10,000 before 30 June 2020, and
• an additional $10,000 from 1 July to 24 September 2020.

You’re also able to nominate how much you’d like (up to the $10,000 limit) and if you have
multiple funds, you can also nominate more than one fund from which to draw this amount
(up to a maximum of $10,000 in total).

For each $10,000, only one application must be made in each time period. Once it has been
made it also cannot be varied. This means that if the amount nominated is less than $10,000
you cannot:

• make a subsequent application to top-up that amount within the same period, and
• request a larger amount in the subsequent period.

For example, if you only apply for release of $8,000 in the 2019/20 financial year, it is not
possible to make a second application to top up this amount in the same financial year. You
also can’t rollover the additional amount to access next financial year. The only additional amount you could withdraw will be up to $10,000 to be taken between 1 July and 24 September 2020.

How do I apply?

Applications are made directly to the Australian Taxation Office (ATO) from 20 April 2020.
You do not apply to your super fund. The application can be made online through MyGov
and this is the preferred approach by the ATO. If you do not have access to MyGov, you
are able to apply by calling the ATO and applying over the phone.

Applications for the 2019/20 financial year need to be lodged by 30 June 2020. A second separate application for 2020/21 financial year can be made from 1 July 2020 until 24 September 2020. It is important that applications are received before the cut-off dates even though the actual payment may occur after that time.

Once you have made an application, it cannot be varied. The ATO may allow you to revoke an application due to genuine error or mistake. The ATO would consider individual circumstances
to make this assessment.

Application process – things you need to do

ATO-held superannuation

The ATO may hold some of your super as amounts have been transferred because:

• the account is a small (<$6,000) lost member account
• the account is an inactive low-balance account, or
• you are considered a lost member account.

ATO-held superannuation cannot be nominated on the application to be paid under the compassionate ground – coronavirus. If you wish to withdraw this amount, you will need to
rollover first to a super fund then submit your application nominating that fund. The rollover
request can be done via MyGov or calling the ATO, including nominating the superannuation account for the funds to be transferred.

Payment from your superannuation fund

Your super fund will receive the determination directly from the ATO which includes your
nominated bank account. There is no need for you to contact your super fund to request
the payment, as instructions have already been provided by the ATO. Your super fund is
required to make the payment to you as soon as possible.

Taxation and social security issues

The payment from your super fund is tax-free. You also do not need to include the amount in
your tax return which means your super fund will not provide you with a PAYG summary. For
social security purposes, the actual withdrawal will not impact your entitlement. However, if you place the funds in a bank account or other assessable asset, it will be assessed under the income and assets tests which may impact your entitlement. It is important to notify Services Australia or Department of Veterans’ Affairs of any change in your circumstances that could impact your payment within 14 days.

Can I access any more funds from my superannuation?

Early access to superannuation may be granted under:

• severe financial hardship, and/or
• compassionate grounds.

These measures are separate to the compassionate ground – coronavirus outlined above.
It means that if you’re eligible, you could access additional amounts from your super funds.
However, these measures have their own eligibility criteria. Speak to your financial adviser
if you wish to discuss your ability to access your super under these other provisions.

Next steps

For more information, speak to us on9562 0742 or visit the ATO website (www.ato.gov.au).