How the COVID-19 situation and your ability to work affects your Superannuation
The COVID19 crisis impact on the Australian people has been significant. Many businesses have been forced to shut down meaning millions of Australians have had to stop working. Some will receive leave entitlements whilst others will have to rely on Centrelink or their savings. For others, it may be a time in which they will need to gain access to money sitting in their superannuation accounts.
On what grounds can you gain access to your super?
There are two criteria outside the usual release of your super.
When do I usually get access to my super?
Super stays in your superannuation fund until you retire from the workforce. Retirement can be at age 55 or 60 if you are born after June 1964.
How to get early access to super.
Financial Hardship or Compassionate Grounds
Most funds will allow up to $10,000 per year to be released from a member super. Superfunds have different requirements but in the current circumstances they may be making it easier for members to access their super.
Also, the Federal Government has announced that members can access up to $10,000 of their super due to COVID19 restrictions.
You must meet one of the following criteria:
- You are unemployed;
- You are eligible to receive: Job Seeker Payment, Youth Allowance, Parenting Payment (partnered and single), Special Benefit or Farm Household Allowance.
- On or after 1 January 2020 you were made redundant;
- On or after 1 January 2020 your working hours were reduced by 20% or more;
- If you’re a sole trader, your business was suspended or there was a reduction in turnover of 20% or more.
- Permanent Incapacity
- Total and permanent disability
- Temporary disability
Permanent Incapacity & Total and Permanent Disability
If you are unable to work due to corona virus or another health condition, you may be eligible to make a Permanent Incapacity Claim. You will gain full access to your super account balance.
If you have stopped work and unable to return due to you health conditions you may be eligible to make a TPD claim. A Total and Permanent Disability insurance lump sum benefit can be a 6 figure amount paid out to you when we can prove that you will not be returning to work due to your health conditions.
Temporary Disability (aka income protection)
If you are unable to work you may be able to claim income protection benefits for a two year period. The fund may pay your full income for two years or up to 85% of your salary.
Contact PK to find out your entitlements. Your superannuation company won’t contact you to let you know that you’re eligible to claim a $300,000 TPD benefit.