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Superannuation
ATO prepares for end of ERS

The Australian Taxation Office (ATO) has announced the end of year shutdown and program closure arrangements for the early release of super (ERS) scheme.

Since April 3.3 million Australians have taken over $34 billion out of their retirement savings through the ERS scheme which is set to close at the end of the year.

The ATO said that while offices will be closed from midday 24 December 2020, to start of business on 4 January 2021, additional staff will be made available to support the final applications.

The final day for Australians to claim their super through ERS will be on 31 December 2020.

The ATO said the last fund files prior to Christmas, will be sent on 24 December 2020 and this will include all approvals up to 22 December 2020.

Additionally, the ATO said it will send fund files on 30 December 2020 and this will include all approvals for 23 December 2020 to 28 December 2020.

Finally, fund files will recommence as normal on 5 January 2021 for the remainder of approvals for applications made up to 31 December 2020.

"Applications for the COVID-19 early release of super measure will close at 11.59pm AEDT on 31 December 2020," the ATO said.

"Applications cannot be accepted after this time; however funds may still receive a small number of fund approval files into January 2021 relating to applications that require remediation."

The ATO said the process is anticipated to continue until late January 2021 as it works through the final applications.

It appears the ATO is anticipating one final spike in last minute applications, as was the case when the second tranche opened in July.

Funds will be updated in January to confirm the last day files will be sent to funds.

Read our full COVID-19 news coverage and analysis here.

Read more: ATOERSEarly release of superAustralian Taxation OfficeCOVID-19
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