Access your superannuation quickly before the deadline nears
Time is running out for Australians to access their superannuation early but find out who has dipped into their retirement savings prematurely.
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TIME is running out for cash-strapped Australians still considering dipping into their retirement savings before the year’s end.
But new data has shown men and residents in NSW and Queensland were among those who were more likely to dip into their retirement savings.
Latest Australian Taxation Office Statistics has revealed details of the 2.7 million applicants who accessed their retirement savings in the first tranche up until June 30.
It found the following:
• 2.7 million applicants withdrew super from funds totalling $19.9 billion.
• 22,000 applicants withdrew money from self-managed super funds totalling $215 million.
• 42 per cent of applicants had a reduction to their income.
• 17 per cent were unemployed.
• 17 per cent were eligible for government benefits.
• Of all applicants a majority (45 per cent) had an income range between $37,001 and $90,000.
• 24 per cent had an income range between $18,201 and $37,000.
• Applicants were from the following locations: NSW 30 per cent, Qld 25 per cent, Victoria 23 per cent, WA 11 per cent, SA 5 per cent, Tas 2 per cent, ACT 1 per cent, NT 1 per cent.
When the scheme opened in April 100,000 applications a day were being received, falling to 40,000 a day in May and 26,000 a day in June.
Intrust Super’s chief executive Brendan O’Farrell says for anyone still considering accessing their super up until the end of this year they must make sure they meet the eligibility criteria.
“With December 31 fast approaching reassess your income both current and future, in addition to the eligibility requirements, before making any decision to access,” he says.
“If you do decide to access, ensure your contact details are current with your super fund and the withdrawal doesn’t impact any insurance cover.”
Latest figures up until October 2.87 million applicants have withdrawn $35.6 billion.
Eligible applicants can still withdraw up to $10,000 tax-free until the end of the year.
But the Australian Institute of Superannuation Trustees’ chief executive officer Eva Scheerlinck says there’s been a “tapering off in applications” because people had “drained their accounts in round one of the scheme.
“We know that there are people suffering financial hardship, but unfortunately the scheme is not without a long-term impact for the individuals who access it,” she says.
“Fund data shows that many vulnerable Australians who have accessed their super due to financial hardship were already worse off to start with.”
She urged anyone still considering dipping into their super to carefully weigh up their options before doing so.
ELIGIBILITY REQUIREMENTS
• You can only submit one application between July 1 and December 31.
• Temporary residents cannot apply in the 2020-21 financial year.
• You must be unemployed or receiving some welfare benefit or were made redundant or had your hours or income reduced by 20 per cent after January 1 this year.
• You do not need to attach evidence to support your application, it’s based on self assessment.
• Keep your records and documents to prove eligibility as this may be requested.
Originally published as Access your superannuation quickly before the deadline nears