CORONAVIRUS AND ACCESSING YOUR SUPERANNUATION EARLY 

The Government is allowing early access to superannuation savings for people affected by Coronavirus (COVID-19). If eligible, you can apply online through myGov to access up to $10,000 of your superannuation before 1 July 2020, and a further $10,000 from 1 July 2020 to 31 December 2020.

Eligible members can apply online through the Australian Taxation Office (ATO) via myGov from 20 April 2020. You cannot apply through the Holden Employees Superannuation Fund directly, you must apply via the ATO. 

Eligibility

You must satisfy any one or more of these requirements: 

  • you’re unemployed,
  • you’re eligible to receive a Jobseeker payment, Youth Allowance for Jobseekers, Parenting payment (which includes the single and partnered payments), Special Benefit or Farm Household Allowance;       

        or, on / after 1 January 2020: 

  • you were made redundant; or
  • your working hours were reduced by 20% or more; or
  • if you are a sole trader – your business is suspended or there was a reduction in your turnover of 20% or more.

Members who access this early release payment will not need to pay tax on amounts released. This will also not affect Centrelink or Veterans’ Affairs payments.
For details about this Government measure - 

IMPORTANT

If you are approached about paying a fee to release your superannuation, it is likely to be a scam. The Australian Taxation Office is managing all claims for the early release of superannuation through myGov. There is no need to involve a third party or pay a fee to get access to this scheme.

How to apply

Apply online through the Australian Taxation Office (ATO) via myGov. Once the ATO approves your application and notifies the Fund, we will process your payment and send it to your chosen bank account.

We suggest you log into your member account to check your balance before you apply. If your account balance is less than what you’ve requested, you will only receive the available amount and will not be able to make another application for early access (because you have been impacted by Coronavirus) for this time period.
 
BEFORE ACCESSING SUPERANNUATION EARLY PLEASE CONSIDER THE FOLLOWING:  

The Impact on your retirement savings 

Your superannuation is intended as a long-term saving scheme that benefits you because whilst your money is invested it earns compound interest (interest on interest). Taking superannuation money out now means that you lose the benefit of the compound interest that would have applied if the money remained invested.
 
To check the potential impact an early withdrawal may have on your retirement savings, use the Retirement Income Simulator available on the Fund’s website.
 
The modelling indicates that a 40-year-old who withdraws $20,000 now could have $36,000 less superannuation savings by the time they retire at 67*.
 
*Estimates based on Retirement Income Simulator. Assumptions: Member age is as specified, male, retires at 67, with a current salary of $75,000 and a balance of $50,000 who withdraws $20,000 from their account, with long term variable lifecycle returns of between 6.4% and 5.2% p.a. based on age (net of investment fees and taxes). Estimates are expressed in today’s dollars. This example is for illustration purposes only and should not be taken to provide an estimate of the amount of savings you may receive. 

The impact on your insurance 

In order to maintain any insurance cover you may have through your superannuation account you need to have sufficient funds to cover the premiums. Check you have enough money in your Fund account prior to applying to ensure your insurance is not cancelled. 

Other types of financial support available to you at this time 

There are income and household support payments available to Australian’s impacted by COVID-19.
Some places to check are: 

  • moneysmart.gov.au – COVID-19 Financial Assistance
  • treasury.gov.au – Coronavirus support for individuals and households
  • serviceaustralia.gov.au – Coronavirus Financial support
  • your bank – some banks are offering to suspend repayment up to six months for home loans, personal loans and credit cards
  • state governments and tenancy boards can offer information on rent relief and your rights
  • Utility companies – speak to your electricity and gas providers’ financial hardship department, as you may be able to set up a payment plan during this time.
This information has been prepared by Holden Employees Superannuation Fund Pty Ltd ABN 26 065 656 948, for general information only. The information does not take into account your personal objectives, financial situation or needs. Therefore, you should not act on this information if you have not considered the appropriateness of this information to your personal objectives, financial situation and needs. You should consult a licensed or appropriately authorised financial adviser before making any financial decision.

25 June 2020