Special COVID-19 Superannuation Condition of Release Extended

Regulations that extend the time frame of the special condition of release to access $10,000 from superannuation for individuals experiencing financial difficulties due to COVID-19 have been formally registered.

The ability to withdraw up to $10,000 from superannuation (if certain conditions are met) was initially set to expire on 24 September 2020. 

The newly registered Regulations to the SIS Act will now enable an eligible individual to withdraw up to $10,000 from superannuation (which is not assessable to the individual) until 31 December 2020.

To be eligible, a citizen or permanent resident of Australia (and New Zealand) must require the COVID-19 early release of super to assist them to deal with the adverse economic effects of COVID-19.

In addition, one of the following circumstances must apply:

• The individual is unemployed;
• The individual is eligible to receive one of the following;   
  •  JobSeeker payment;
  • Youth Allowance for job seekers (unless they are undertaking full-time study or are a new apprentice);
  • Parenting payment (which includes the single and partnered payments);
  • Special Benefit; or
  • Farm Household Allowance;
• On or after 1 January 2020 either;
  • they were made redundant;
  • their working hours were reduced by 20% or more (including to zero); or
  • they were a sole trader and their business was suspended or there was a reduction in turnover of 20% or more (partners in a partnership are not eligible unless the partner satisfies any other eligibility criteria).

The Money Edge | Bundaberg