[vc_row][vc_column][vc_column_text]We attach a link to the Australian Taxation Office website that contains some additional information concerning the practical application of the Early Release of Superannuation legislation.[/vc_column_text][mk_button dimension=”flat” corner_style=”rounded” size=”medium” url=”https://www.ato.gov.au/Super/APRA-regulated-funds/In-detail/APRA-resources/Coronavirus—early-release-of-superannuation-industry-consultation-24-March-2020/” target=”_blank” align=”none”]Read More[/mk_button][vc_column_text]Some key points to note are as follows:
- The legislative requirements come into effect from 25 March 2020 (with applications able to be lodged from mid-April 2020) and will remain in place until 24 September 2020.
- The release of benefits is on compassionate grounds (see new Regulation 4.22B) below.
- The changes will allow eligible employees to submit two applications for up to $10,000 each from their Superannuation fund, one application in the current 2019–20 financial year and one in the 2020–21 financial year.
- Individuals will be required to apply via MyGov as the primary channel; however a manual option will be available for those who can’t transact online. An ATO system build is underway for applications to be electronically processed.
- The ATO will deploy both the electronic and manual solution mid April 2020.
- The application process is mostly self-assessed. However, there will be warnings about penalties for making false and misleading statements to deter inappropriate use.
- The member can elect to claim the $10,000 from two different accounts – for example, $5,000 from one fund and a second $5,000 from another fund.
- However, where a member makes an application and the fund has insufficient money to fulfil the application, the member will not be able to make a second application for the balance from another fund/account in that financial year. They will also not able to seek the balance in the 2020–21 financial year above the $10,000 cap.
- The relevant new Regulation relating to Compassionate Grounds Coronavirus is reproduced below
[/vc_column_text][vc_column_text]“4.22B Release of benefits on compassionate ground—coronavirus[/vc_column_text][vc_column_text]
- A person may apply to the Regulator for a determination that an amount of the person’s preserved benefits, or restricted non-preserved benefits, in a specified RSA or RSAs may be released on the ground that it is required to assist the person to deal with the adverse economic effects of the coronavirus known as COVID-19 if:
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- the person is unemployed; or
- the person is eligible to receive any of the following under the Social Security Act 1991:
- jobseeker payment;
- parenting payment;
- special benefit; or
- the person is eligible to receive youth allowance under the Social Security Act 1991 (other than on the basis that the person is undertaking full-time study or is a new apprentice); or
- the person is eligible to receive farm household allowance under the Farm Household Support Act 2014; or
- on or after 1 January 2020 the person was made redundant, or their working hours were reduced by 20% or more (including to zero); or
- for a person who is a sole trader—on or after 1 January 2020 the person’s business was suspended or suffered a reduction in turnover of 20% or more.”
[/vc_column_text][mk_button dimension=”flat” corner_style=”rounded” size=”medium” url=”https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r6521 ” target=”_blank” align=”none”]Link to the legislation:[/mk_button][vc_column_text]Please contact us directly should you wish to discuss this or other COVID-19 incentives. [/vc_column_text][/vc_column][/vc_row]
