Early access to super

If you are affected by the Coronavirus, you may be eligible to access up to $10,000 of your superannuation in 2019/20 and a further $10,000 in 2020/21. The ATO started to accept applications from 20 April 2020.

What do I need to do to access my super in the 2020/21 financial year?

Many of our members have already accessed some of their super through the COVID-19 early release of super initiative. If this is you, we hope that accessing your funds has helped you during these unprecedented times.

There is another opportunity to access your funds in the 2020/21 financial year from 1 July 2020. Eligible citizens and permanent residents of Australia or New Zealand can access a further payment of up to $10,000 from 1 July 2020 to 24 September 2020 by applying to the ATO via your my.gov.au account.

Find out what you can do to help us pay you as soon as possible.

How much can I apply for?

If you are eligible, you will be able to apply online through myGov to access up to $10,000 of your super before 1 July 2020. A further $10,000 can be accessed from 1 July 2020 until 24 September 2020.

Am I eligible for early access to superannuation?

Check below if you satisfy any of these requirements. To apply for early release, you must satisfy any one of them, or more.

• you're unemployed
• you're eligible to receive a JobSeeker payment, Youth Allowance payment for job seekers, Parenting Payment (which includes the single and partnered payments), special benefit or farm household allowance.
• on or after 1 January 2020:
  • you were made redundant
  • your working hours reduced by 20% or more
  • if you are a sole trader, your business was suspended or there was a reduction in your business turnover of 20% or more.

These payments are tax-free and not treated as income under the Centrelink income test.

When can I apply?

The ATO began accepting applications via myGov from 20 April 2020.

How to apply?

You don’t need to apply to IOOF.

All applications are sent online directly to the Australian Taxation Office (ATO) through the myGov website. Make sure you have your myGov account linked to your ATO account.

• How to set up your myGov account
• Once your myGov account is set up, you can link it to ATO online services. You will need these accounts linked in order to apply for the early super release.
  How to set up your myGov account and link it to the ATO account

You will need to certify that you meet the above eligibility criteria.

After the ATO has processed your application, they will issue you with a ‘notice of determination’. The ATO will also provide a copy of this determination to IOOF, which will advise us to release your superannuation payment. We will then make the payment to you.

How can I make sure I receive my payment as soon as possible?

Make sure IOOF has your correct details. The fastest and easiest way to do it is online.

For Online users

• Log into your account with your email and password, or register for online access with your account number and personal details.
• After logging in, go to your account and choose Account details in the navigation.
• Check if your Personal details card is up to date. You can update your address and other personal information — just click Edit.

Will I need to pay tax?

These payments are tax-free and not treated as income under the Centrelink income test. This means the early release will not affect Centrelink or Veterans’ Affairs payments.

Is IOOF able to pay the super lump sum via cheque?

Due to the Coronavirus situation and with our staff working from home - we can only make lump sum payments by direct credit to your nominated bank account with the ATO.

• The bank account must be in your name or in joint member names.
• We cannot make payments to third party accounts.
• We cannot make payments via cheque.

What if I'm not eligible for the early super release?

If you're struggling financially because of the Coronavirus but you’re not eligible or don't want to withdraw from your super, there are some other initiatives in place.

Other Government support includes:

• a 'Coronavirus supplement' of $550 per fortnight for people receiving the 'JobSeeker' allowances and other benefits
• two separate $750 payments to social security, veteran and other income support recipients
• a reduction in social security deeming rates of a further 0.25%, to assist Age Pensioners.

For more information on other Government support visit the Treasury’s page Economic Response to the Coronavirus or visit the Government’s moneysmart website

Please talk to your financial adviser, or contact us to find out more about measures applicable to your situation.

Important considerations before accessing your super early

Even if you’re eligible, there are some potential impacts you should consider.

• What will be the impact on your retirement savings? If you cash out your super now you could miss any future investment growth.
• What about your insurance cover? If you cash out your super and your account balance falls to zero, you could inadvertently lose your insurance held in your super which could put you and your family at risk, should the unexpected occur.

Before making the decision to access your super early, please seek advice from the financial adviser available to you through your super account or contact us and we can help.

Further information and Government resources

Information on how the Government is supporting individuals, households and businesses is on the Government’s Treasury website

More information is also available on the ‘COVID19’ section of the ATO website

Additional resources, including tips and calculators is on the Government’s MoneySmart website