Coronavirus: Australians are just weeks away from being able to access their retirement savings
Cash-strapped Australians struggling financially due to the coronavirus will soon be able to dip into their superannuation savings. Here’s how, and when, you can access your cash.
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Exclusive: Cash-strapped Australians should be able to access their superannuation savings from April 20 as funds work around the clock to roll out the new scheme.
Multiple super funds have confirmed to News Corp they are working towards the scheme starting in just 3.5 weeks, but desperate Australians have been inundating providers with phone calls asking for information. Under the scheme, eligible Australians can access $10,000 tax-free from their accounts before April 30.
They can access another $10,000 tax-free in the new financial year. The measure was announced on Sunday to help people cope financially during the COVID-19 pandemic. But industry sources have heavily criticised it, dubbing it as “poor thought out with little industry consultation”.
“Every Government promises not to tinker with super, this time they’ve gone beyond tinkering,” one source said.”
They have imposed on funds a situation that will not only be destructive to the market returns now and member balances; it will be destructive towards the long term strategies managing members’ funds.”
But Treasurer Josh Frydenberg dubbed super “people’s money” and said they should be allowed to access it.
While Treasury hasn’t publicly announced when members would be able to access their cash, it said it continued to aim towards a mid-April timeline.
The Association of Superannuation Funds of Australia’s chief executive officer Dr Martin Fahy said they were working closely with the Australian Taxation Office, government and regulators to roll out the scheme.
He urged Australians not to contact their fund yet, until the program had been completed.
“Please be patient and hold off phoning your super fund about these early release superannuation payments for a few more weeks,” Dr Fahy said.
“Building the mechanisms to deliver these payments will take time and realistically won’t be in place until mid to late April.”
Under the scheme it’s expected to tip $27 billion back into the hip pocket of Australians – this is less than 1 per cent of the $3 trillion held in retirement savings. Eligible Australians must fall into one of the following categories:
– Unemployed.
– Eligible to receive a jobseeker payment, youth allowance for jobseekers, parenting payment or special benefit, or farm household allowance.
– Were made redundant or had their working hours reduced by 20 per cent or more after January 1 this year.
– Sole traders whose businesses have been suspended or their turnover fell by more than 20 per cent or more could apply. Once applications become available for the scheme – most likely next month
– Australian should go to ato.gov.au to register.