Updated.
April 09, 2020 18: 14:46
Nearly 618,000 Australians have actually applied to get an early release of their superannuation under the Federal Government’s plan to help people out of work and facing financial challenge throughout the coronavirus pandemic.
Bottom line:
- The ATO has not yet estimated the number of individuals who have registered for early release of their extremely will be eligible to draw down
- Funds have pledged they will allow members to access their money regardless of longstanding clauses providing discretion
- Super funds and experts argue the industry does not have a liquidity problem however there will be higher administration requirements as the funds deal with a flood of queries
From April 20, the Morrison Government is enabling retrenched workers and those suffering monetary challenge because of shutdowns to access approximately $20,000 in incredibly and take it out tax totally free.
The first $10,000 is available between mid-April and July 1, and the 2nd $10,000 is offered after July 1 for about three months.
The Australian Taxation Office (ATO) said since midnight April 8, it had 617,800 registrations of interest, but might not yet approximate the number of people would be eligible to draw down.
This figure is up from more than 360,000 it reported since last Friday, and Australians are yet to be able to complete the main kind which permits them to apply from April 20.
To be eligible, individuals should be either unemployed or qualified for welfare support payments consisting of the JobSeeker payment, Youth Allowance, Parenting Payment, Special Benefit or Farm Family Allowance.
The plan is also on offer to those who have actually had their working hours decreased by 20 per cent or more, or sole traders whose service has b