ATO’s new advice to Aussies rushing to access super early
Anxious Australians waiting patiently to access their superannuation early are being issued important information from the Australian Taxation Office.
On Tuesday it was revealed 975,300 had registered their interest to access super early ahead of the giant retirement $3 trillion kitty being opened up this week.
But the ATO has now starting issuing further details to applicants who registered their interest in the scheme since the scheme was unveiled last month.
In email correspondence seen by News Corp it outlines to those who are set to take up the Morrison Government COVID-19 scheme, they have until June 30 to lodge their application for this financial year.
In the correspondence it says applicants must now do the following:
• Ensure your myGov account is linked to the ATO to lodge your application.
• Locate the application form in the ATO online services, go to the Super menu, select Manager, then the coronavirus release link.
• Due to high demand be patient with the application process.
• Try again if you cannot log in.
• Do not call the ATO about your application.
• If you have already lodged your application you do not need to take any further action.
• You should get a response from the ATO within four days of submitting your application.
Eligible applicants who have been made redundant this year or had a significant drop to their incomes can apply.
Applicants can access $10,000 this financial year and another $10,000 next financial year tax-free.
It is expected applications with the ATO can take several days and then if given the green light the application is passed onto the super fund.
From here they can take up to five business days to process the application and transfer the funds into the member's nominated bank account.
But modelling by Industry Super Australia found a massive $14 billion could be withdrawn early by Australians rorting the system to get access to quick cash.
Through the online process applicants must self assess their financial situation and ISA's research found about 1 million Australians who are not eligible to tap into their super early were intending to apply.
Some sources have even labelled the scheme as this - "it's just a simple tick of a box and away you go".
But the ATO has warned anyone flouting the system will get caught.
The ATO does not have rigid checks in place about incomes at the moment which means it relies on the applicant stating their situation and being able to prove it if questioned at a later date.
Originally published as ATO's new advice to Aussies rushing to access super early