The Australian Government is allowing early access Superannuation

Posted by Paul Davies on 12/06/20 15:21

We’re currently living in unprecedented times and everyone is feeling the impact.

To combat this, the Australian government is allowing early access of up to AUD $20,000 to help those struggling financially from the impact of the Coronavirus. $10,000 is available prior to 1st July 2020 and another $10,000 between 1/7/2020 to 24/9/2020. It isn’t taxed for Australians but is likely to be taxed for UK tax residents.

If you are over 55 years of age and place the money in a UK pension, then you will likely receive tax relief.

If you are younger and have alternative savings, then it may be wise to leave the money in superannuation as the value of $10,000 invested after inflation (2.5% assumed) is more like $22,245 assuming 5% growth for 30 years.

In order to qualify for this fund, you need to meet one of the following criteria:

  • You are unemployed on or after 1 January 2020
  • You were made redundant on or after 1 January 2020
  • Your working hours were reduced by 20% or more
  • Your business was suspended or there was a reduction in your turnover of 20% or more
  • You are a sole trader or there was a reduction in your turnover of 20% or more.

To apply for this fund, head to www.my.gov.au.