Access your superannuation early – how to apply to get your funds quickly

Cash-strapped Australians will be rushing to access their superannuation savings early in a bid to financially cope during the COVID-19 pandemic.

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Unemployed pastry chef Dulcy Semu is among the hundreds of thousands of cash-strapped people rushing to access their super early.

From April 20 Australians can get some of their retirement savings prematurely if they have lost their job or had a significant drop in their income.

Ms Semu, 45, originally from New Zealand, was recently put out of work and now has limited access to funds.

She has about $18,000 in superannuation and said with little cash savings, tapping into super was her only hope to get some instant money in her hands.

As a New Zealand citizen she did not meet the Centrelink eligibility requirements to receive welfare payments, Ms Semu said.

Pastry chef Dulcy Semu, 45, is out of work and said she has no other alternative but to access her retirement savings early.

“Accessing super is a lifeline,” she said.

“I basically have no money and it’s a last resort – I have a credit card debt too.

“I was planning on moving back to New Zealand a few weeks ago but my flights were cancelled so I’ve opted to stay in Australia.”

Under new rules introduced by the Morrison Government, eligible employees who are in financial turmoil are able to access their super early because of the financial fallout from COVID-19.

The scheme allows applicants to access $10,000 in super savings tax-free this financial year and another $10,000 next financial year (from July 1).

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Intrust Super chief executive officer Brendan O’Farrell said while early access to super provided “critical relief” it would have a “significantly negative impact” on a person’s future wealth.

“A 25-year-old could end up $130,000 behind after withdrawing $20,000 today, not to mention possible loss of insurance cover which, in some cases, can only be regained through underwriting that may lead to additional exclusions or loadings,” he said.

“The system could also be clogged by some individuals making unnecessary claims given the minimal self-assessment criteria.”

Already more than more 881,600 Australians had registered their interest to access super early and applications can be accepted through myGov.

From April 20 applicants will be notified by email or SMS when applications open, they do not need to phone the Australian Taxation Office.

Industry sources say it could take up to five days for funds to be transferred after an application is lodged with the ATO and have they have approved it.

Applicants are being urged to be patient.

Australian Institute of Superannuation Trustees head of advocacy Melissa Birks urged anyone accessing super early to only do it as a “last resort” and be sure to exhaust all other Government income-support measures first.

Originally published as Access your superannuation early – how to apply to get your funds quickly