Key facts about the early release of super change
- If you’re eligible you can withdraw up to $20,000 from your super ($10,000 this financial year and another $10,000 in 2020/21).
- Applications can be made for this financial year and from 1 July 2020 until 24 September 2020 for the next financial year.
- Applications must be made through your myGov account.
- The ATO will advise us if your application is successful within four business days. We will then transfer your payment to the bank account you’ve nominated through myGov as soon as possible.
- Payments are tax-free and won’t affect Centrelink or Veterans’ Affairs payments.
Check if you’re eligible
To apply for early release of your super, one or more of the eligibility criteria below needs to apply to you:
- You’re unemployed
- You’re eligible to receive a JobSeeker payment, Youth Allowance 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, or your working hours were reduced by 20 per cent 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.
Weighing it all up
Consider all your options and work out what’s best for you, not just for today, but the future too.
If you’re 25 years old you could lose up to $95,696 in super savings by the time you retire, if you withdraw $20,000 now. Why? Because your $20,000 invested in super will grow over time, but if you take it out now, you’ll miss out on the compound interest and long-term growth. If you’re 35, it could be $65,868 that you miss out on by the time you’re 67. The table below shows the impact on your retirement savings depending on your age now.
The difference $20,000 can make to your retirement
|Age||Starting balance||Super taken||Difference at Retirement|
*Scenarios modelled by ISA Pty Ltd. See assumptions at https://www.industrysuper.com/assumptions/.
While this table highlights the difference $20,000 could make to your retirement, we also realise how big a difference it could make to your life right now. We support this government initiative in these unprecedented circumstances and are here to assist you to make an informed decision. Only you can decide what’s right for you right now.
There’s a lot to think about when it comes to accessing your super early, for more information visit our early release of super page or book a call back from one of our financial advisers, advice over the phone is included in your membership.^
^Financial advice obtained over the phone, or through MemberOnline, is provided by Mercer Financial Advice (Australia) Pty Ltd (MFAAPL)
ABN 76 153 168 293, Australian Financial Services Licence #411766