Early Access to Super Application Is Online via ATO

Ash-Say on 19/04/2020 - 10:24
Last edited 23/04/2020 - 03:38 by 1 other user

The application to access super via ATO is now online via MyGov. Go to Super > Manager > Coronavirus Release. There is self declaration form and no evidence is being sought. You will need to provide your bank details and it is tax free and won't affect your Centrelink payment.

Get in early(if you are withdrawing) to avoid a system crash when it officially goes live tomorrow.

I have also included a poll to get a sense of what is Ozbargain community plan to do.

Eligibility Criteria

You must satisfy one or more of the following requirements:

-You are unemployed.
- You are eligible to receive a job seeker payment, 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 were a sole trader, your business was suspended or there was a reduction in your turnover of 20% or more.

How much you can get

If you are a citizen or permanent resident of Australia or New Zealand and you meet the eligibility requirements, you may apply for up to two releases. You can make one application per financial year to access up to:

$10,000 of your super in the 2019-20 financial year (by applying between 20 April 2020 and 30 June 2020)
$10,000 of your super in the 2020-21 financial year (by applying between 1 July 2020 and 24 September 2020).

If you hold a temporary visa and you meet the eligibility requirements, you can make one application for up to $10,000 of your super in the 2019-20 financial year (by applying between 20 April 2020 and 30 June 2020).

Things to Remember
Withdrawing your super early will reduce your retirement savings and may impact insurance attached to your account. Check Money Smart website for more information to assist with decision.

https://moneysmart.gov.au/covid-19/accessing-your-super

Poll Options

  • 73
    Will not withdraw
  • 37
    Will withdraw full $20k
  • 1
    Will withdraw only $10k
  • 6
    Will withdraw less than $10k
Financial Superannuation

Related Stores

Australian Taxation Office
Australian Taxation Office

Comments

  • WreckTangle on 19/04/2020 - 10:32

    No evidence is being sought…what’s the bet that will end badly for anyone that makes a false declaration to the ATO?

    • jimbobaus on 19/04/2020 - 10:35
      +1

      Cousin works at ATO and said they are not doing any checks on this at all, they are literally just allowing access and a means to do so.

      • brendanm on 19/04/2020 - 10:41
        +2

        Tax loophole here we come.

      • WreckTangle on 19/04/2020 - 10:42

        It is important that you assess your eligibility accurately. We are administering this measure on behalf of all Australians and will manage the eligibility criteria with strict guidelines to ensure we can support those financially affected by COVID-19. There are penalties for making false and misleading statements.

        https://www.ato.gov.au/Individuals/Super/In-detail/Withdrawi…

        • jimbobaus on 19/04/2020 - 10:44
          +1

          Yeah but as i said they have allocated zero resources to police it.
          they are allocating ALL their resources to policing JobKeeper

          Should note i am not accessing mine but am sharing what my cousin said who's work is focused on COVID-19 Support within the ATO currently

        • brendanm on 19/04/2020 - 11:06
          +2

          What the penalty though? It doesn't say. If it's simply to pay it back, that would be worthy of a shot.

          Also, if I am told to take a day a week of annual leave, will this be counted as 20% reduction in hours? Edit - it specifically states "working hours", so technically this would qualify?

      • E5TOQUE on 21/04/2020 - 14:12

        Apparently the ATO will fine people $12,500 for making a false declaration to access your super early.

        https://www.dailymail.co.uk/news/article-8239073/ATO-vows-cr…

        • jimbobaus on 21/04/2020 - 14:20

          As i said, My source at the ATO who is directly working on Jobkeeper and other measures due to COVID-19 has said they have allocated zero resources to validating super withdrawal claims
          they have a small crew of staff processing the applications and forwarding information to the super fund for funds release and thats it.
          If they some how had information given to them that indicated someone who was ineligible withdrew the funds they would investigate it but they are not actively looking for people who are ineligible.

          Its also based on a reduction in hours not income so all you need is evidence of a loss of hours to validate your claim should you be questioned which is as simple as a letter from an employer.

          literally every single person on the COVID-19 team is working on Jobkeeper and other business level measures, the super release is very low on their list of things to police.

          I for one am not accessing my super at all and i do not think those who are ineligible should access it.

          i will say they are going to be very focused on those who withdraw then deposit funds back in an attempt to get a tax deduction.

    • loulou1 on 19/04/2020 - 11:02
      +2

      With single touch payroll now reporting information every pay period to the ATO, surely it wouldn’t be hard to work out whether someone is eligible without them having to provide any proof anyway

      • jimbobaus on 19/04/2020 - 15:57

        Its based on an hours reduction of 20% or more, not income.
        While yes 20% less hours should equate to 20% less income it may not in all cases.
        STP only reports income earned now hours worked

  • johndowy on 19/04/2020 - 10:37

    You need to add another Poll Option.

    Will withdraw and put back

    • Stalker on 19/04/2020 - 10:42
      +8

      I'm not sure that is good advice…oh, wait, you were talking about superannuation. Carry on.

      • brendanm on 19/04/2020 - 11:01

        It's great advice assuming we can get away with it, good tax offset.

  • bemybubble on 19/04/2020 - 11:17

    Seeking clarity on the reduction of work hours by 20%. If you’re a partner in a partnership or beneficiary of a trust then technically you could declare yourself eligible. I’m banking that the intent was that line was directed for employees as they go out of their way to specifically mention sole traders…

  • Donaldhump on 19/04/2020 - 12:02

    Be a few people doing this one I bet, which I think is a mad loophole

    June 29 withdraw it
    June 30 add it back
    July 1 do tax return get 3900 back or whatever tax rate is
    July 2 withdraw again
    July 3 add it back

    July 1 2021 get 3900 back again

    Net gain 7800

    • bemybubble on 19/04/2020 - 12:19

      Already onto it. Ato put out an alert as there are part Iva issues

      • brendanm on 19/04/2020 - 13:03

        Got a link?

          • brendanm on 19/04/2020 - 13:34

            @bemybubble: Twitter lol. Doesn't answer any actual questions. Does taking a day a week leave "for the good of the company" for a month, qualify as a 20% reduction in "working hours" for that month?

            • bemybubble on 19/04/2020 - 13:49

              @brendanm: LinkedIn actually. Posted by the ATO and the second commissioner himself.

              As for your latter question I couldn’t see why not. However care must be taken as to whether that it isn’t a scheme between employee/employer to access such benefits

      • jimbobaus on 21/04/2020 - 14:22

        Spoke to my cousin who is working on the COVID-19 team at the ATO and he said this is going to be a number 1 focus of the team once Jobkeeper requirements slow down etc
        he said if anyone does it they will 100% be caught. The Commissioner has made it clear zero tolerance apparently.

    • jimbobaus on 19/04/2020 - 12:32

      I suspect this loophole will be known and plugged very quickly if it is not already.
      I know HostPlus my super fund mentioned changes to deposits going forward while we go through this process but ill be honest i just briefly read it and then deleted the email as it was not relevant to me.

    • idjces on 19/04/2020 - 13:08
      +1

      From my quick maths the benefit was only like $1000-1500 (marginal tax rate - 15% contributional tax rate) on $10,000. Then you need to get your employer to salary sacrifice it back in pretax, which personally I am already doing and may not have the extra $10,000 headroom to contribute without hitting the contribution limits.

      Combine those factors with the market volatility of late, and the expected odds of a positive outcome from this 'loophole' don't seem very favorable.

      • brendanm on 19/04/2020 - 13:38
        -1

        Why do you need to salary sacrifice it? Whats stopping you from simply getting the $10k, then putting it into super as a "voluntary after tax contribution", and then claiming the difference between the 15% and normal rate at tax time?

  • PissLUR on 19/04/2020 - 13:37

    @OP

    You must satisfy one or more of the following requirements:

    this is only referring to Australian citizens and permanent residents..

    There are different requirements for temporary residents.
    https://www.ato.gov.au/Individuals/Super/In-detail/Withdrawi…

  • champstarr on 19/04/2020 - 18:17
    +1

    Does anyone know if it affects ftb a and b or is it going to be exempt like early super release for a home because if I access the whole 10k we will lose 7k from ftb a and b.

    • bemybubble on 19/04/2020 - 18:22
      +2

      It’s exempt

  • altiarlio on 19/04/2020 - 23:32

    too tempting

  • backpaqer on 20/04/2020 - 08:07
    +3

    Considering your super is linked to the share market and property markets and a few others that are pretty much all heavily impacted by the current situation. So say you took out $10,000 now… It could have cost you up to $20,000 of your hard earned to get that $10k in there in the first place depending on how you've instructed the fund to invest your money (yes you do have a choice). In this heavily depressed state, we might still not be at the bottom but history proves out that this massive slide should provide an equally large rise once confidence is restored to markets.

    So it's not easy money, you should only access this facility if you're out of options. Which includes hitting up charities like the salvos, red Cross etc who benefited massively from bushfire donations and are cashed up.

  • Ashbargin on 20/04/2020 - 08:31
    +1

    For those saying it is a loop hole to withdraw and put back into super claiming a tax deduction. This strategy has gone on for years through Transition to retirement TTR. ATO hasn’t declared part IV a. For those doing the calculation that making a $20,000 contribution and claiming a tax deduction (if you are in the 39% marginal) = $7,800 net benefit. You are forgetting that the super contribution tax of 15% = $3,000. So the net benefit is $4,800.

    • brendanm on 20/04/2020 - 09:26
      +2

      Still a benefit for nothing.

  • desafinado74 on 20/04/2020 - 10:08
    +7

    It is great that the government has provided this option.
    I will definitely withdraw mine.

    After all, it is your own money. It is your right to do what you want with it.
    And if it means the withdrawn amount can help you pay off some mortgage installments, rent, and put food on the table, then go for it.

    Plus, some superfunds are such poor performers, you might even get better returns by investing in ETFs, shares etc.

  • xylarr on 20/04/2020 - 13:16
    +1

    You also have to realise that as well as the ATO making urgent system changes to give effect to this, every super fund also has to make changes to their systems so they can accept the feed from the ATO and make payments. Given the potential volumes, the larger funds are going to want to automate this a much as possible, but I wouldn't be surprised if there is a fair delay between submitting it at the ATO and your fund being able to process it.

    • jimbobaus on 21/04/2020 - 14:25

      3-5 days for ATO step
      3-5 days for Super fund step
      1-2 days for bank credit

      This has all been legislated to allow for the early access.
      Super funds already have a mechanism to withdraw funds (hardship circumstances withdraw etc)

  • sagrules on 20/04/2020 - 15:39

    Question for the older folk, if you have reached preservation age of super but not 65 yo yet, prior to covid-19 would you still get taxed the 15% upon taking money out? If my inlaws is in this bracket is it worth taking the money out now as they most likely satisfy the above conditions of elgibility? I am not sure of their current balance so thats something I need to check.

  • 2023 on 20/04/2020 - 20:39

    Seemed pretty quick and straightforward.

    Your application has been processed. You will receive correspondence advising the outcome via your myGov inbox within 72 hours.

    Now to see if me quitting my second job early in the year will technically fall into the reduction of hours category…

  • fd9 on 21/04/2020 - 08:05

    Is there any downsides to me withdrawing 20k from super and chucking it straight into the ASX, either in blue chips or an ETF?

    I am a student with 3 years of uni left - and although I don't really have a current absolute need for the money - it would serve as a good buffer/breathing room until I finish uni.

    Most of the comments are centered around withdrawing it and keeping in your bank - but what if I was to withdraw it and put it straight into the share market?

    Thank you!

    • desafinado74 on 21/04/2020 - 10:55

      I am actually going to invest directly in shares with my withdrawals. For sure there will be risks involved. Best to stick to reputable companies.

  • backpaqer on 21/04/2020 - 08:16

    There's a couple of scenarios I've thought of where it might be good to get your hands on the cash. If you're in one of the higher tax brackets and not suffering too badly (is you don't really need the 10k) - take the tax free 10k and then salary sacrifice 10k back in to your super which is only taxed at 15%. You could do this twice.

    But in the end, the govt has been quite generous and will be needing as much tax as it can get it's hands on. Best not to get too clever or they'll just put GST up.

  • PissLUR on 21/04/2020 - 11:00
    +2

    take 10K and put in the offset account. Yes or No?

    • bemybubble on 21/04/2020 - 11:12

      Well crown isn’t open. Offset is 2nd round pick

  • altiarlio on 21/04/2020 - 18:09

    got a text from ato saying approved and to wait at least 5 business days for the money

  • Zachary on 21/04/2020 - 23:09
    +1

    Awesome….will be able to draw out all my super….so I can be rich again!

  • super8 on 26/05/2020 - 11:13

    Just inspected my superannuation statement in detail for the first time in 5 years and Ive identified a former employer missed three (quarterly) contributions. Bloody not happy with this - apparently im not alone - anyone else ripped off in this fashion also?

    • Zachary on 30/05/2020 - 17:28

      Ooooooooooooh, should ring them up and find out why they forgot to pay you….

    • blueyez on 04/06/2020 - 13:49

      Report them to the ATO to chase them up

    • cateyneow on 07/06/2020 - 23:05

      Yep report them, and then everyone else on the books will get their $ too
      I am a tax agent :)

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