Government extends COVID-19 early access to super
July 24, 2020
Australians adversely financially affected by COVID-19 will now be given more time to apply for the early release of superannuation.
The government’s economic and fiscal update last week has revealed that applications for the COVID-19 early release of super scheme will now be extended to 31 December.
Eligible citizens and permanent residents of Australia and New Zealand previously had up to 24 September to submit an application through ATO online services in myGov.
The scheme has been in place since 20 April, allowing eligible applicants to withdraw up to $10,000 in the first tranche of payments up to 30 June, followed by a further $10,000 from 1 July.
While early access to super has always been a feature for those experiencing severe financial hardship or accessing on compassionate grounds, the COVID-19 measure allowed individuals to apply as long as they experienced a reduction of working hours by 20 per cent or more.
Interest in the scheme has been strong, with $25.3 billion in super withdrawn since inception of the scheme in April.
A total of 2.8 million applications to withdraw funds for the first time have since been received.
Repeat applications to access super from 1 July have also continued to show strong take-up, with 818,000 applications put forward in the two weeks to 12 July.
The average payment made since inception sits at $7,718, and rises to $8,755 when considering repeat applications only.
The ATO has since warned that it will take a closer look at applications to ensure the integrity of the scheme is upheld.
It has now acquired the data of 3 million Australians from Services Australia to verify individuals’ eligibility criteria for the early release of super, JobKeeper payments and the cash-flow boost.
Behaviours that will attract the Tax Office’s attention include applying where there is no change to the applicant’s regular salary and wage or employment information, artificially arranging their affairs to meet the eligibility criteria, and withdrawing and recontributing super for a tax advantage.
The ATO will also take a dim view of those who apply for the early release of super in order to obtain a tax benefit — such as withdrawing and recontributing super to claim a tax deduction — and may look to apply Part IVA where necessary.
Many small business owners report difficulties when it comes to the delay between issuing an invoice and actually getting paid.
Inventory management is critical for any business. It'll help keep enough stock to satisfy customer demand and avoid pitfalls associated with inventory.
Builders report difficulties recruiting or retaining skilled workers. We outline what’s causing the shortages and how you can find those much-needed skilled workers.
Positive cashflow is the beating heart of your business. Read our Plain English guide to cashflow and find out how to get in complete control of your cash position.
At the Federal Budget in May 2026, the Government announced that it would reintroduce a loss carry back tax offset for companies.
Working for yourself or running your own business? Setup robust systems for expenses & tax requirements so you can focus on your important tasks.
From 1 October 2026, businesses will no longer be able to apply a surcharge to card payments on designated eftpos, Mastercard and Visa networks.
Do you know how to track the financial health of your business? We highlight 5 key metrics you should be tracking and managing to keep your finances on course.
Now comes a decision for anyone who uses their car for work: is it better to claim a deduction using the logbook or cents per kilometre method?
Why is good bookkeeping so vital for your financial management? We’ve got some top hacks for maximising your bookkeeping!
