A COVID-19 TAX TIP FROM MR TAXMAN
#10 PRE-REGISTER FOR EARLY ACCESS TO SUPERANNUATION
If you have been financially affected by COVID-19 (ie unemployed; or after 1 January 2020 been made redundant or had working hours or income reduced by >20%) and intend on withdrawing up to $10,000 from your superannuation fund before 1 July (and another $10k between 1 July & 24 Sept) you can now pre-register your interest now by logging in to your myGov account and following the “Intention to access coronavirus support” instructions. Applications will be accepted through myGov from 20 April.
Note that withdrawing your super early may impact:
a) your chance of seeing it recover after the stockmarket will effectively bounce back;
b) Your income protection insurance cover;
c) your Life / Total Permanent Disability insurance cover (as insurance cover may lapse if your super balance falls below $6k).
The withdrawal is tax-free and there is scope to recontribute that back into super as a tax deduction in the future (subject to cap limits). Ideally you should talk to a financial adviser about these strategies.
This tip was provided by Mr Taxman, Adrian Raftery, author of 101 Ways to Save Money on Your Tax - Legally! 2019-2020 edition (Wiley, May 2019, AU$25.95). This information is of a general nature only and does not constitute professional advice. You must seek professional advice in relation to your particular circumstances before acting.