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Covid 19 - Early Release of Super

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Initiate

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If you had reduced hours in 2019/2020 but go back to full time hours in June 2020 are you still eligible to make the super withdrawal in 2020/2021?

 

 

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Community Support

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Hi @MDA78,

 

Thanks for reaching out.

 

If I have already received one payment for an early release of super due to COVID-19, do I need to re-apply for the second payment after 1 July 2020.

Yes. Applications for next financial year will open on 1 July 2020 and close on 24 September 2020. You’ll need to make sure that you remain eligible.

 

I hope this helps.

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Best answer

Community Support

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Hi @MDA78,

 

Thanks for reaching out.

 

If I have already received one payment for an early release of super due to COVID-19, do I need to re-apply for the second payment after 1 July 2020.

Yes. Applications for next financial year will open on 1 July 2020 and close on 24 September 2020. You’ll need to make sure that you remain eligible.

 

I hope this helps.

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Initiate

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Hi

 

I know I need to reapply in 2020/2021 but I am not sure if I am eligable.

 

If I am working full time again am I still able to use this measure.

 

I did satisfy the condition of working hours reduced by 20% from 1 January 2019 but in this financial year I will be working full time again and not reduced hours

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Community Support

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Hi @MDA78

 

Thanks for getting back to us.

 

While our website doesn't go into detail about how to measure your 20% reduction in working hours, the early access to superannuation fact sheet on the Treasury website does. In turn, we recommend that you check out the applicable example (Ed the bartender) in the fact sheet.

 

As you can see, you are comparing your average weekly working hours from the July to December 2019 period to what they are when you submit your application. This means that if you want to apply in say July, you will need to compare your average weekly hours in July 2020 with your average weekly hours from July to December 2019.

 

If you work out that you no longer meet the 20% working hours reduction requirement, unless you meet one of the other eligibility requirements, you won't be able to apply for the second $10,000 early super release.

 

Good luck with it all.

 

Thanks, Chris

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Does the ATO consider the treasury fact sheet the law?

The legislation appears pretty clear that the above taxpayer would still remain eligible as there has been an hours drop of 20% or more from 1 January 2020.

If this wasn’t the intention of the law, why was it drafted in this manner? I have a good idea how this plays out through the courts.
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Community Support

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Hi @prathej1

 

The treasury fact sheet has examples we direct clients to if they need help working out the 20% reduction in their hours. As previously mentioned, our website doesn't go into great detail and its up to each individual to self-assess their eligibility for early release of Super

 

Thanks, Ari

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Newbie

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Did u find the answer yet?? Cuz i am in the same boat.