Early release of your super

Important information: If the ATO approves your early access to super application, there is no need to contact us.  We will process your claim and transfer the funds to your bank account within 5 business days of the ATO letting us know.

 

On March 22, the Government introduced financial assistance measures to aid Australians experiencing financial difficulty as a result of the COVID-19 pandemic. If you are in financial stress as a result of coronavirus you may be able to access up to $20,000 from your super account.

Key points

  • If you are eligible you will be able to withdraw up to $20,000 from you super. ($10,000 this financial year and another $10,000 in 2020/2021).
  • Applications for early release of super from your REI Super account are now available. Apply through your myGov account
  • You cannot apply through REI Super.
  • Applications can be made from 20 April 2020 and 30 June 2020 for this financial year. Then from 1 July 2020 until 24 September 2020 for the next financial year.
  • ATO will confirm if your application has been successful.
  • Payments are tax-free and won’t affect Centrelink or Veteran’s affairs payments
  • We recommend you speak to a financial adviser and consider all other options before making any decisions. 
  • These measures will not affect existing ways to apply for early access to your super.

Protecting your super from COVID-19 scams

There are currently COVID-19 (Coronavirus) themed phishing emails and SMSs in circulation.  If you are approached about paying a fee to release your super, it is likely to be scam.

The Australian Taxation Office is managing all claims for the early release of super through the myGov online service. There is no need to involve a third party or pay a fee to get access under this scheme.

Find out how you can protect yourself

Are you eligible for early release super?

To apply for early release super you must satisfy any one or more of the following requirements:

  • you are unemployed; or
  • you are eligible to receive a JobSeeker payment, youth allowance for JobSeekers, parenting payment (which includes the single and partnered payments), special benefit or farm household allowance; or

On or after 1 January 2020:

  • you were made redundant; or
  • your working hours were reduced by 20 per cent or more; or
  • if you are a sole trader — your business was suspended or there was a reduction in your turnover of 20 per cent or more.

What is the process?

Step

Where

When

1. Visit the myGov website.

myGovFrom 20 April

2. Check your eligibility.

See eligibility above.From 20 April
3. Choose which super account you want to access funds from (you may have multiple accounts)myGovFrom 20 April
4. Select the amount you wish to access from each super account (up to a total of $10,000).myGovFrom 20 April
5. Specify the bank account you wish the money to be paid into.myGovFrom 20 April
6. The ATO will review your application. If approved they will notify you via myGov and will notify us.myGov2-3 business days after you submit your application.
7. We will make the payment to you.Your bank account which you specified through myGov.Once the ATO has passed your application for early release to us, we will process your claim and transfer the funds to your bank account within 5 business days. This time may increase where we need to contact you to clarify information.

Before you do anything, consider the long-term impact

If you are experiencing financial hardship you may be eligible to access your super early. However, it is important to understand how this may affect your final retirement savings. Industry Super Australia analysis shows if you’re 25 years old and withdraw $20,000 now, you could lose up to $95,696 in super savings by the time you retire. Why? Because your $20,000 invested in super now is likely to grow over time and if you were to withdraw now, you will lose out on compound interest and long-term growth. See below on what this could mean for you.

AgeStarting balanceSuper takenDifference at retirement
25$20,000$20,000$95,696
30$40,000$20,000$79,393
35$60,000$20,000$65,868
40$79,000$20,000$54,647
45$95,000$20,000$45,338
50$109,000$20,000$37,614
Table and scenarios modelled by ISA Pty Ltd. See IndustrySuperFunds website for more information and assumptions.


Need money now? Other financial options are available

We understand that you may need money now and there are several relief options available if you are experiencing financial difficulty. 

Government support

  • JobSeeker, income support payment for those who are unemployed, plus a coronavirus supplement of an extra $500 per fortnight.
  • JobKeeper, is a wage subsidiary for businesses and not-for-profits impacted by the coronavirus. Affected employers will be able to claim a payment of $1,500 per fortnight per eligible employee from 30 March 2020 until 27 September 2020.
  • Payments to support households for those who already receive social security, veteran or other income support payments or are an eligible concession card holder will receive two automatic $750 economic support payments. 
  • Early release of super, if you are eligible you will be able to withdraw up to $20,000 from you super. ($10,000 this financial year and another $10,000 in 2020/2021).
  • See government household assistance for more information.

Other options

If you feel like you’re struggling financially, paying your rent, mortgage or bills and feel overwhelmed or not sure what to do, contact the National Debt Helpline on 1800 007 007. They have professional financial counsellors that can provide you with free, independent and confidential services to help you get back on track.

  • Mortgage breaks. If you are having problems meeting your mortgage repayments, you can talk to your bank about changing the terms of your loan or pausing or reducing your repayments under a hardship arrangement. See Australian Banking Association for more information.
  • Utility providers. If you are having difficulty in paying your electricity, gas or water bills, contact your utility services providers. They are legally required to assist you. 
  • Health insurance. Check and see if they offer any financial hardship support.

Will your insurance be affected?

If you have insurance with REI Super, you’ll keep any cover that you have unless: 

  • your account is closed as a result of your withdrawal, in which case your cover will cease on the date your account with REI Super is closed;
  • after your withdrawal, there are insufficient monies in your account to pay the insurance premiums
  • if no contributions or rollovers are made into your account for 16 consecutive months unless you previously notified us to keep your insurance cover even if this happens.

If you wish to reinstate your insurance cover, you will need to reapply with Metlife, REI Supers’ insurer. If they accept your application, they may apply restrictions, exclusions, or loadings. 

We recommend you get financial advice to understand how early release of your super will affect your balance and insurance. Call our helpline on 1300 13 44 33.

For more information about your insurance cover inside your super and COVID-19, go to Metlife’s FAQs.

 
*The information contained in this page does not constitute financial product advice. However, to the extent that the information may be considered to be general financial product advice, REI Super advises that REI Super has not considered any individual person’s objectives, financial situation or particular needs. Individuals need to consider whether the advice is appropriate in light of their goals, objectives and current situation. Members should obtain and read the Product Disclosure Statement for REI Super before making any decisions.
The information contained in this page does not constitute financial product advice. REI Super does not give any warranty to the accuracy, completeness or currency of the information provided. Although REI Super makes every reasonable effort to maintain current and accurate information, you should be aware that there is still the possibility of inadvertent errors and technical inaccuracies. REI Superannuation Fund Pty Ltd ABN 68 056 044 770, AFSL 240569, RSE L0000314 Trustee of REI Super (ABN 76 641 658 449), SPIN REI0001AU, RSE R1000412. MySuper unique identifier 76641658449129 .