COVID-19 update | 23 March 2020

COVID-19 update | 23 March 2020

Last night the Prime Minister announced the next stage of the government's economic plan to deal with the economic impact of the coronavirus. One of the measures announced was that the Federal Government will allow individuals in financial stress as a result of the Coronavirus to access up to $10,000 of their superannuation in 2019-20 and a further $10,000 in 2020-21.

Applications can be made to the ATO from mid-April via the myGov website. To be eligible for this payment, members must satisfy any one or more of the following requirements:

• be unemployed or
• be 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 or
• on or after 1 January 2020, be made redundant or

           - had working hours reduced by 20% or more or

           - if you are a sole trader - your business was suspended or there was a reduction in your turnover of 20 per cent or more.

Fact Sheet - Federal Government announces (i) eligible members can access their super and (ii) a reduction in minimum drawdown requirements for account-based pensions

Should you want to apply to access your super, you may wish to seek financial advice.

People accessing their superannuation will not need to pay tax on amounts released and the money they withdraw will not affect Centrelink or Veterans' Affairs payments.

Australia and the world are experiencing uncertain times due to COVID-19. Facing the dual challenges of looking after our health as well as our investments concerns us all. Find out what Prime Super is doing here.