You can now get early access to your super – but beware

Individuals suffering from COVID-induced financial stress will be able to get early access to up to $20,000 of their superannuation.

Eligible individuals can apply online through myGov for access to:

• $10,000 of their superannuation before 1 July 2020
• $10,000 of their superannuation in the three months after 1 July 2020

These early withdrawals will be tax-free.

Eligible Australians include those who are unemployed or whose working hours have been reduced by at least 20% since 1 January 2020.

Sole traders will also be eligible if, since 1 January, their business has been suspended or they’ve had a reduction in turnover of 20% or more

However, early access to your precious retirement savings should usually be as an absolute last resort. First, see if you can:

• Draw on other savings
• Access other government relief packages
• Tap into any equity you might have

The best person to speak with about these changes would be your financial advisor.