How to access $10,000 in superannuation early and receive your money by Christmas Day

Cash-strapped Australians can still access their superannuation early but time is running out. Find out how to get your money before Christmas.

Cash-strapped Australians have only a few days left to get up to $10,000 in their hands in time for Christmas.

The Australian Taxation Office has issued a warning to those still planning on accessing their superannuation early to do so by this Friday or risk missing out on receiving the funds before Christmas Day.

Under the Federal Government’s early access to super scheme more than 2.99 million individuals have withdrawn $37.1 billion in retirement savings to help them financially cope during the COVID-19 pandemic.

This is likely to fall well short of the Government’s predication that total withdrawals would reach $42 billion.

But in an ATO alert they said, “you may be able to receive your money before Christmas 2020 if you submit an application online before December 11”.

Under the popular scheme eligible applicants were able to withdraw $10,000 last financial year and another $10,000 this financial year through to the end of the month.

The Australian Institute of Superannuation Trustees’ chief executive officer Eva Scheerlinck said for anyone still trying to access their super they should allow plenty of time to get their money transferred in their bank account.

The Australian Institute of Superannuation Trustees chief executive officer Eva Scheerlinck said accessing super early should only be done as a last resort. Picture: Supplied.

“It takes a few days for funds to process early release applications, so anyone facing financial hardship and needing to access the COVID super scheme before Christmas should do so before 11 December, through the MyGov site,” she said.

“It’s also worth keeping in mind that accessing your super should be a last resort, as dipping into your nest egg can have a significant negative impact on your retirement outcome.”

Financial adviser Scott Haywood warned that applicants accessing their super early should only do it to help pay for essential expenses, not Christmas presents.

“It needs to cover essential expenses and it’s not a gift of pulling money out to spend it on rubbish for other people despite how much you love them, those days are well and truly gone,” he said.

“If you are financial dire straits and in complete desperation, regardless of Christmas being an event then yes you should act because you might have no work over the Christmas break.

“But when it comes to buying presents for aunty Jill and uncle Jack you have got to be kidding me, it should be used for a roof over your head and essential expenses.”

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HOW TO ACCESS SUPER EARLY

• Check your super balance online to check you have sufficient funds.

• Make sure you are eligible. This includes being made redundant in 2020, receiving Jobseeker or you’ve had your working hours reduced by 20 per cent or more.

• Temporary residents are not eligible to apply in the 2020-21 financial year.

• Ensure your bank details, which the ATO & your super fund have, are up to date.

• Visit the MyGov website, then click on the ATO portal.

• Click on the COVID-19 measures.

• Go to the early release of superannuation and click on ‘apply’.

• An outcome letter will be sent to your myGov inbox and you may also receive an SMS notification.

• Once approved it will take about three business days to process.

• All applications close on December 31.

Originally published as How to access $10,000 in superannuation early and receive your money by Christmas Day