The scheme allowing early release of superannuation due to COVID-19 has driven net superannuation contributions negative for the first time. According to APRA, quarterly net superannuation contributions – super contributions less benefits paid – have gone negative for the “first time since compulsory superannuation was introduced”. For the June 2020 quarter net super contributions were… Continue reading Net superannuation contributions go negative for first time
The Government intends to give people impacted by COVID-19 an extra three months to apply to access a second tranche of their superannuation. As part of the COVID-19 response, the Government expanded the early access to superannuation rules to allow people who met certain conditions to withdraw up to $10,000 of their super in 2019/20,… Continue reading Government to extend COVID-19 early access to super deadline
ASIC has announced temporary relief from some of the financial advice rules, to improve the ability of consumers to get affordable and timely advice about early access to their superannuation. The Government expanded the early access to superannuation financial hardship rules as part of the COVID-19 response. This means more people will be able to… Continue reading Temporary relief from advice rules for early access to super
The SMSF Association has called for the rules around accessing superannuation early to pay for medical treatment to be “tighter and applied correctly”, in part so it can’t be used for elective surgery, while suggesting that some medical professionals may be over-promoting the option. The Association notes the “significant” increase recently in accessing superannuation on… Continue reading Early access to super rules should be “tighter and applied correctly”
Victims and survivors of family violence should be able to access their superannuation early. HESTA and Industry Super Australia have called on the Federal Government to make changes to the superannuation rules to allow family violence victims to access their super, as a last resort. HESTA CEO Debby Blakey said urgent action in this area… Continue reading Victims of family violence should have early access to super: HESTA
Applications for early release of superannuation on compassionate grounds can now be lodged online.
Accessing super early is allowed in some circumstances, with a number of conditions. However illegal super early access schemes can result in stiff fines or more severe penalties. Generally in order to access superannuation generally a condition of release must be met. The conditions relevant for accessing super early include: Compassionate grounds Severe financial hardship Terminal medical conditions Temporary… Continue reading Accessing super early and legally
The Department of Human Services (DHS) has reported a continuing increase in applications for early release of superannuation. The DHS received 19,286 applications for early release of super in 2013/14, up 7% from the previous year and 18.1% over 2009/10. These figures are contained in the DHS annual report for 2013/14. However approved applications for early release of… Continue reading More people applying to DHS for early release of super
Currently people who illegally access their superannuation balance early pay tax on the amount at their marginal tax rates, plus the medicare levy. However it was a recommendation of the Cooper Review that this be tightened to further discourage illegal early access of super, with such amounts to be taxed at the top marginal tax rate: “Recommendation… Continue reading Top marginal tax rate on early access to superannuation?
The Administrative Appeals Tribunal (AAT) has released another decision which shows that it does not pay to participate in superannuation early access schemes. The decision of Vuong and Commissioner of Taxation  AATA 402 (23 June 2014) following the ATO disallowed two objections by the taxpayer in relation to an early access scheme they participated in, including a significant… Continue reading Early access to super: ‘fee’ included in assessable income