With the outbreak of Coronavirus, a mass amount of people have been financially impacted whether it be by loss of job or reduced income creating financial hardships for many. The Government allowed Australians to take up to $10,000 out of their Super for people to regain more financial stability, however, to take out Super you had to meet a criterion. This access to Super has come with some negative implications which many are unaware of.
If you took out Super without meeting the eligibility criteria set by the ATO you could be looking at a $12,600 fine. To be eligible to take out your Super you must be unemployed, receiving a payment such as youth allowance, JobKeeper, a parenting payment or have your working hours reduced by a minimum of 20%. The ATO is closely monitoring people who have not been financially affected by COVID-19 or people who have been rearranging their affairs to meet the criteria and are placing them on a watchlist.
By giving the ATO incorrect information to receive Super it will follow with the penalty $12,600 fine.
By taking out Super early you risk your retirement leaving you with less money. Taking out Super early could leave you greatly impacted; taking out as much as $10 000 now could jeopardise your future Super anywhere between $60,000 to $100,000, which could result in you working longer.