Second payment – from 1 July

Eligible clients will be able to make an application to the ATO for an early release of their superannuation from 1 July. Clients who have made an application in the 2020/21 financial year may be able to receive a second payment.

So that your clients can be paid the early release funds as soon as possible, we encourage you to review your clients’ holdings now and place any required sales before 30 June to ensure they have enough cash for the second payment.

Why is this important?

Unit pricing is delayed in July as fund managers reconcile their unit prices following the end of financial year. This means sell orders may take longer to process when placed in July which could delay your clients receiving their payments.

Please be aware that if your clients don’t have enough cash available to fund the withdrawal, we’ll:

  • initiate asset selldowns without seeking further instructions from you or your client
  • sell assets down based on information provided in the relevant Product Disclosure Statement (PDS)
  • process the selldown within five business days after receiving the withdrawal request from the ATO (if we need to sell assets on your client’s behalf).

If we need to initiate asset selldowns, receiving the proceeds from these payments will take longer than normal because of the expected unit price delays in July. Asset selldowns in July can often take at least two weeks longer than normal.

Please also consider insurance premiums when evaluating your client’s available cash balance.

What if my client doesn’t have enough money to fund the full withdrawal?

If your clients’ balance is insufficient for the full payment, we’ll:

  1. use the available balance to make a partial payment
  2. draw the account balance to zero
  3. keep the account open.

If we’re unable to complete the payment request either in part or in full, your client won’t be able to make a further claim to the ATO for the unpaid amount.

Need help?

If you have any questions about the early access of superannuation process, please see Adviser Help Centre.