Desperate Aussies warned not to double-dip in early super scheme
Desperate Australians trying to access their super are doing it multiple times and are making other mistakes that could delay the processing of their applications.
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Exclusive: Desperate Australians are applying multiple times to access $10,000 of superannuation and are relying on outdated balances as a guide to know how much money they have.
Nearly 1 million Australians registered their interest to access superannuation before the giant $3 trillion pot opened up on Monday, allowing people hit financially by coronavirus to prematurely tap into their retirement savings.
But the Australian Taxation Office’s assistant commissioner Sonia Corsini urged Australians to make sure they only apply once this financial year.
“Some people are trying to apply more than once,” she said.
“You can only apply once per financial year, that’s once this financial year and once next financial year from July 1 for the 2020/21 year.
“If someone does put in a second application we will reject it.”
Under the new COVID-19 measure rolled out by the Morrison Government, Australians are able to withdraw $20,000 out of their super accounts tax free.
However the super balances held by the ATO are in most instances outdated – many will show the person’s super balance as of June 30 last year.
And inevitably, that balance will have changed because more contributions have been made or the fund has delivered a subdued performance because of changing market conditions.
Ms Corsini also said some hasty applicants had made typos and input their bank details incorrectly which could delay their application’s process.
Super funds are receiving a day’s worth of applications the next business day and from here they can take up to five business days to process the information and hand over the money.
Superannuation Minister Senator Jane Hume said the early access to super was rolled out to help those “experiencing financial stress due to COVID-19”.
“Super was created to provide Australians with an income for their retirement but for many families the need is great right now,” she said.
“This is a temporary measure to give Australians flexible options in times of great need, only individuals can make that call.”
AustralianSuper’s group executive of membership Rose Kerlin said “before accessing super it is important to review any alternative financial support you may be able to access”.
The Australian Institute of Superannuation Trustees’ chief executive officer Eva Scheerlinck said applicants should be sure the input the correct information when applying online.
“Take the time to double-check that your personal details are up-to-date and correct, otherwise the ATO may not be able to process your application,” she said.
She also warned of scammers during this stressful time for many Australians.
To apply for early access visit myGov and link up your ATO account then follow the prompts.