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COVID-19 Support - Early Access two super, multiple sources of income

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Hello,

I can't find the answer to this question. If a person has two sources of income, one as an employee and one as a sole trader, then are they eligible for early release of super if their total income reduces by more than 20%?

For example, a person has a full time job where they earn an average of 60-70% of their income and they operate a small business where they earn 30-40% of their income. During the crisis they are unable to operate as a sole trader so for this quarter they lose ~30% of their income. The legislation doesn't seem to make any mention of persons with multiple sources of income for the early release of super.

Can they access the early release of super this quarter?

Thank you

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Community Support

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Hi @thorex and @Dandroid5000

 

Thanks for reaching out to us.

 

You will be able to access your super early in accordance with the COVID-19 measure if you meet one of the eligibility requirements as outlined on our website.

 

The 20% reduction in turnover reduction requirement is specifically for turnover related to your sole trader business. Any income that you derive from your employment (e.g. salary or wages), or any other income for that matter (e.g. dividends) isn't counted in this test.

 

While our website doesn't go into detail about how to measure the 20% turnover reduction, the temporary early release of superannuation fact sheet on the Treasury website does. In turn, we recommend that you check out the example (Rachel the sole trader) in the fact sheet.

 

As you can see from the example, you are comparing your average turnover for your sole trader business from the July to December 2019 period to your turnover when you submit your application.

 

For more information about COVID-19 early release of super, have a look at our website.

 

Good luck with it all.

 

Thanks, ChrisR

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I am also in this situation and looking for clarification. The rules don't specify that as a Sole Trader I can't be otherwise employed but the application form on the ATO site lists the options under 'reason' as 'sole trader only'.
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Hi @thorex and @Dandroid5000

 

Thanks for reaching out to us.

 

You will be able to access your super early in accordance with the COVID-19 measure if you meet one of the eligibility requirements as outlined on our website.

 

The 20% reduction in turnover reduction requirement is specifically for turnover related to your sole trader business. Any income that you derive from your employment (e.g. salary or wages), or any other income for that matter (e.g. dividends) isn't counted in this test.

 

While our website doesn't go into detail about how to measure the 20% turnover reduction, the temporary early release of superannuation fact sheet on the Treasury website does. In turn, we recommend that you check out the example (Rachel the sole trader) in the fact sheet.

 

As you can see from the example, you are comparing your average turnover for your sole trader business from the July to December 2019 period to your turnover when you submit your application.

 

For more information about COVID-19 early release of super, have a look at our website.

 

Good luck with it all.

 

Thanks, ChrisR

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Newbie

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Hi Chris,

 

My situation is also very similar with everyone in this thread.

I am working full time 37.5 hours per week and also part time bus cleaner for 20 hours per week.

 

Due to the regional lockdown in our state on middle of April this year, my bus cleaner job was being paused until further noticed, so I lost 20 hours out of my 57.5 hours per week income.

I had my annual leave saved up on my cleaner job so I was using it up to keep my name in their payroll book.

They did not apply for jobkeeper, so I did not have jobkeeper luxury neither.

By that time (April), I applied for the early release of my super and been granted.

 

At the end of May, the regional lockdown relaxed, my bus cleaner job came back up to normal.

So my income did not go down by 20% (considering I was also using up my annual leave during that time), but my working hours did go down by more than 20%.

Have I done the right thing by applying for the early  release of my super? Things definitely are a lot better than what I feared would happen in April, we were predicted with six months lockdown back then.

 

My condition is also very similar to this, except with two jobs:

https://community.ato.gov.au/t5/COVID-19-response/Early-release-of-super/m-p/48340

 

 

Thank you,

 

Eko

 

 

 

 

 

 

 

 

 

 

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Did anyone get clarification about this. I am working at another job and I also had my own business that has now had to reduce due to covid. So technically 2 jobs. Much appreciated.
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Hi @Lolliepoppzin,

 

Thank you for reaching out to us. The previous response advised - You will be able to access your super early in accordance with the COVID-19 measure if you meet one of the eligibility requirements as outlined on our website.

 

The 20% reduction in turnover reduction requirement is specifically for turnover related to your sole trader business. Any income that you derive from your employment (e.g. salary or wages), or any other income for that matter (e.g. dividends) isn't counted in this test.

 

While our website doesn't go into detail about how to measure the 20% turnover reduction, the temporary early release of superannuation fact sheet on the Treasury website does. In turn, we recommend that you check out the example (Rachel the sole trader) in the fact sheet.

 

As you can see from the example, you are comparing your average turnover for your sole trader business from the July to December 2019 period to your turnover when you submit your application.

 

For more information about COVID-19 early release of super, have a look at our website.

 

Hope this helps.

 

Regards,

Jodie2.

 

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Newbie

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Did you get clarification from the ATO on this.

 

I also have two sources of icome.

1. Full time work.

2. Part time beauty business which due to covid restrictions is suspended till further notice.

 

So would I be eligable for the sole traders business suspended reason?

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Newbie

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It is not clear at all.
But supposedly yes because it takes into account all income from both sources so technically it has gone down 20% .
I have kept screen shots etc. Of the articles
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Hi @Rulz12,

 

Thank you for reaching out to us. Treasury has a fact sheet about Early access to your Super with examples. You may view this to assist when making a self assessment. You can also use the previous links provided.

 

Hope this helps.

 

Regards,

Jodie2.