AJ Buckingham & Associates - Chartered Accountants
  • Home
  • About Us
    • The Team >
      • Andrew Buckingham - Director
      • Sheridan Buckingham - Practice Manager
      • Ross Woodham - Consultant
      • Fiona Powell - Accountant
      • Kate Blanco - Accountant
      • Coreen Obenza - Virtual Assistant
    • Mission & Vision
  • Services
    • Business Advice
    • Taxation Services
  • Audit Shield
  • Blog
  • Contact
  • More
    • Testimonials
    • Client Directory
    • Quarterly Newsletter
    • Useful Links

Temporary Early Access to Superannuation

17/4/2020

 
Picture
For those individuals facing significant financial adversity due to the Coronavirus, the Government is allowing them to access $10,000 of their superannuation before June 30, 2020 and a further $10,000 from July 1, 2020 and September 24, 2020. Amounts withdrawn do not need to be included in tax returns.

​The primary purpose of superannuation is to save for retirement and any withdrawals will impact on your future balance. Having said that, given the extraordinary current circumstances, making a withdrawal might be essential. 

​To be eligible for any early release of amounts from superannuation, Australian (and New Zealand) permanent residents must:

  • unemployed, or
  • Be eligible to receive JobSeeker, Youth Allowance for JobSeekers, parenting payment (includes single and partnered payments), special benefit or farm household allowance; or
  • On or after 1st January 2020:
              You were made redundant; or
              Your working hours were reduced by 20 per cent or more; or
              For sole traders - your business was suspended or turnover was reduced by 20 per cent                    or more.

(Note that extra criteria applies for all classes of temporary visa holders).

Application is through the myGov website directly to the ATO and will require you to certify that you meet the eligibility criteria. After processing the ATO issues you with a determination and sends a copy to your superannuation fund so that they can release the money to you without having to apply separately. Self managed super funds have separate arrangements.

​While withdrawing funds out of your superannuation fund is not ideal, it is a one-off opportunity to access funds you would not normally be able to access so it is something that should be considered.
Picture

​To minimise the impact on your superannuation balance on retirement, you could consider salary sacrificing or contributing to your superannuation in the future to replenish the amount withdrawn in these circumstances.

​Don’t hesitate to get in touch if you wish to discuss this option before proceeding.

​


Comments are closed.

    Blogs

    • 2021 Tax Return - Home Expense Claim
    • Year End Tax Planning
    • Superannuation and Tax Planning
    • COVID-19 Disaster Payment & Business Support Package
    • 2021/22 Federal Budget Highlights
    • Ways to Grow Your Business - Your Ideal Type of Customer
    • What drives your business growth & profits?
    • Planning for a Pandemic
    • Are you covered by Audit Insurance?
    • Is it the Right time to Start a Business?
    • 2020-21 Federal Budget Summary
    • Car Expense & Home Office Claims
    • Business Lessons from a Pandemic
    • Marketing in Preparation for a Post Pandemic World
    • Working Remotely? The Ins and Outs of Claiming Home Office Expenses
    • JobKeeper Payment Scheme - Extension and Changes
    • Stage 4 Restrictions Affecting Businesses
    • Post-Pandemic - Survival Then Revival
    • Pivot, Adapt, Survive and Even Thrive
    • 2020 Year End Tax Planning
    • Temporary Early Access to Superannuation
    • Tax Office Launches Tip Off Service
    • New Financial Year Brings Change
    • The Importance of Local Search for Small Business Owners
    • Thinking of Renovating your Investment Property?
    • Buyer Beware - Before you Buy a Business
    • How to Reduce your Business Risk
    • ATO Releases Further Guidelines for 'Downsizer Contributions'
    • Single Touch Payroll
    • Financing Your Start Up Business
    • Cents Per Kilometre Rate Change
    • Common Bookkeeping Mistakes To Avoid
    • Tax Office Launches Mobile Strike Teams
    • Plan Your Success in 2019
    • Cash Flow – The Lifeblood of Your Business
    • Tax & Your Christmas Party?
    • Franchisee gets massive fine for poor Record-Keeping
    • Expand your customer base with Facebook Advertising
    • Thinking of starting a business?



    RSS Feed

Powered by Create your own unique website with customizable templates.