COVID-19: Early Release of Superannuation

Roswell Crash Survivor

Roswell Crash Survivor

Well-Known Member
Silver Stacker
You can now register your interest with the ATO for early release of your Superannuation (via MyGov).

$10,000 for 2019/20 FY and $10,000 from 2020/21 FY.

This is an exceptional opportunity to covert some of your money previously trapped in the 'Superannuation' slaughter-pen into cold hard cash; how you choose to spend it is your business.

https://www.ato.gov.au/Individuals/...-using-your-super/Early-access-to-your-super/

ATO said:
COVID-19 (novel coronavirus) – early release of superannuation
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ATO said:
Applications for early release of superannuation (super) will be accepted through myGov from 20 April.

You can register your interest now by logging in to your myGov account and following the Intention to access coronavirus support instructions. If you don’t already have a myGov account, you can set one up by selecting 'create an account'.

We will notify you by email or SMS when applications open. You do not need to phone us.

About the measure
The government is allowing individuals affected by COVID-19 to access up to $10,000 of their superannuation in 2019–20 and a further $10,000 in 2020–21. Individuals will not need to pay tax on amounts released and the money they withdraw will not affect Centrelink or Veterans’ Affairs payments.

Eligible individuals will be able to apply to access up to:

  • $10,000 of their super before 1 July 2020
  • a further $10,000 from 1 July 2020 until 24 September 2020.
To apply for early release, you must satisfy one or more of the following requirements:

  • You are unemployed.
  • You are eligible to receive a job seeker payment, youth allowance for jobseekers, parenting payment (which includes the single and partnered payments), special benefit or farm household allowance.
  • On or after 1 January 2020, either
    • you were made redundant
    • your working hours were reduced by 20% or more
    • if you are a sole trader, your business was suspended or there was a reduction in your turnover of 20% or more.
You will not be required to attach evidence to support your application; however, you should retain records and documents to confirm your eligibility.
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Dont do it.

this would be like selling 526 ounces of silver at $19 an ounce In a price drop when you paid $26 ounce for it, instead of waiting for the price to recover.
your losses would be insane.

go talk to financial adviser if you arent happy with your super investment, dont just pull your money out of your super Willie Nillie when you could be f'king it up for your self, especially when you will be taking such a big hit.

People who took their money out during the GFC when it dropped came off worse than those who left it alone and rode it out, and in only 5 years.

I know of people who raided their super funds when they were younger, they are now retired and they live like dogshit on the pension fortnight to fortnight.

So again if you arent happy with your Super investment talk to an adviser and sort it out.
Last thing you want tobe doing is retiring with no money.
 
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My accountant just informed me that those taking their super pension are allowed to take half of what was previously required for this year and next. So if you were previously required to take a minimum of 5% this is now 2.5%.

So if you can afford it, you can leave your investments in the tax free environment of your super fund.
 
Now, given the nature of this forum, is anyone planning on getting any gold and/or silver if they choose to release their super early?
 
About the measure
The government is allowing individuals affected by COVID-19 to access up to $10,000 of their superannuation in 2019–20 and a further $10,000 in 2020–21. Individuals will not need to pay tax on amounts released and the money they withdraw will not affect Centrelink or Veterans’ Affairs payments.

Eligible individuals will be able to apply to access up to:
  • $10,000 of their super before 1 July 2020
  • a further $10,000 from 1 July 2020 until 24 September 2020.
To apply for early release, you must satisfy one or more of the following requirements:
  • You are unemployed.
  • You are eligible to receive a job seeker payment, youth allowance for jobseekers, parenting payment (which includes the single and partnered payments), special benefit or farm household allowance.
  • On or after 1 January 2020, either
    • you were made redundant
    • your working hours were reduced by 20% or more
    • if you are a sole trader, your business was suspended or there was a reduction in your turnover of 20% or more.
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So not everyone can get it, you have to have actually suffered some hardship.
 
Subject to the make up of an individuals super a/c investments, come 20 April there may not be anything there to take if the share markets keep tanking.
 
If there is a "run on super", one would think a flash crash from this circumstance alone will occur?

Good opportunity for those with cash already to take advantage of... then sell back when some of those receiving their funds buy back into the market in their personal trading accounts!
 
oziwassabi said:
If there is a "run on super", one would think a flash crash from this circumstance alone will occur?

Good opportunity for those with cash already to take advantage of... then sell back when some of those receiving their funds buy back into the market in their personal trading accounts!
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I have this big chunk of cash just sitting waiting for this lol.
Every one seems to have this stupid idea of Selling low and buying high lol.
many people seem to have it all arse backwards, this super cashing out is a perfect example of that lol.
oh quick the stock market is high, better invest more into super, oh no stock market is low better pull it out, lol and take a big loss.
Fomo combined with weak hands as they say

Just finding the right time to drop a big chunk of cash on stocks.

Then you have those who feel they have to pul ltheir super to survive, Be willing to bet they arent parting with any of the big flat screens and the expensive material items they have laying around before raiding super lol.
 
Lol, your reasoning above is Buffet/Graham investing 101 :)

Jason1 said:
Then you have those who feel they have to pul ltheir super to survive, Be willing to bet they arent parting with any of the big flat screens and the expensive material items they have laying around before raiding super lol.
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I also noticed those waiting in the dole lines had some of the newest expensive headphones and more than likely the latest edition smartphones... yet dont have money to buy food this week?
 
oziwassabi said:
Lol, your reasoning above is Buffet/Graham investing 101 :)



I also noticed those waiting in the dole lines had some of the newest expensive headphones and more than likely the latest edition smartphones... yet dont have money to buy food this week?
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Given the psychology of culture right now not having the ‘latest’ IS considered the poverty line
 
Jason1 said:
Then you have those who feel they have to pul ltheir super to survive, Be willing to bet they arent parting with any of the big flat screens and the expensive material items they have laying around before raiding super lol.
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Have you not considered some people are pulling super as they don't trust the government not to mess with it in decades to come to your payouts detriment?
 
Stoic Phoenix said:
Have you not considered some people are pulling super as they don't trust the government not to mess with it in decades to come to your payouts detriment?
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If you were doing it for that reason the smart time tobe doing that is when the value of your super is high not when its low.
There are times when the ship has long sailed and this is one. My comments are in regards to current prices not 6 weeks ago when prices were record highs.

If they are wanting to manage their own super they didnt have rely on economic hardship todo so
 
Smart time? you mean the only time in history our government has allowed you to pull from your super pre retirement which is now?
Who said my super is low? Personally mine is no lower than it was at the beginning of this financial year (and I havent put a cent into it this fin year).
The ship hasn't sailed as you put it pal
 
Stoic Phoenix said:
Smart time? you mean the only time in history our government has allowed you to pull from your super pre retirement which is now?
Who said my super is low? Personally mine is no lower than it was at the beginning of this financial year (and I havent put a cent into it this fin year).
The ship hasn't sailed as you put it pal
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you could have managed your super your self at any time. Im glad to hear your super is worth the same, Many others cant say the same and would likely be foolish to pull out when its low.

And any one reading this, take anything you read here with a grain of salt. Go see a Financial advisor if you want to mess around with your super, other wise you go about it wrong you will have a pretty shitty retirement simply because you listened to conspiracy theories on a forum.

and you still have to prove hardship to pull this money out,
so If you are under-hardship then Likely that money isnt going to be re-invested anyways.
 
managing your super and pulling funds out of it are two different things.
Either way regardless of industry super or self managed.I would be pulling the funds to repurpose how I see fit and not be accountable to an auditor or the govt.

The part in bold is the crux of my point
 
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