Will I Be Taxed On Early Release Of Super?

How much tax do I pay if I withdraw my super early?

Any amounts over the low rate threshold will be taxed at 15% (plus the Medicare levy).

If you are withdrawing a lump sum from super and are younger than age 55 (which is only possible in very limited circumstances), the lump sum will be taxed at 20% (plus the Medicare Levy)..

To do this, go to COVID-19 early release of super. Withdrawing money from your superannuation won’t affect your Centrelink payment.

Has anyone been fined for early super release?

No fines have been issued so far but the ATO is actively monitoring more than 5000 applicants from the first round of applications, asking them to review their eligibility before deciding to re-apply to access their super for a second time, the spokesperson says.

Can I access my super to pay off debt?

Can I access super early to pay off debts? Yes, but it’s important to understand that early super payments made under the severe financial hardship provision can only be used to pay your reasonable living expenses.

Is Super withdrawal classed as income?

Lump sum super withdrawals are tax-free after the age of 60. What you do with your super lump sum after you withdraw it may affect your eligibility for the Age Pension. Your dependants are also entitled to access your super as a tax-free lump sum when you die.

Do you pay tax on early release of super?

You will not need to pay tax on amounts released under COVID-19 early release of super and will not need to include these amounts in your tax return. Amounts released under other compassionate grounds must be included.