Q: I have been unemployed for 10 months now and I am still having problems finding work. I’ve got bills to pay off and I’m finding it hard to do that with the tiny amount I get from
Trish’s response: I’m sorry to read about your troubles. Yes, in certain circumstances individuals suffering financial hardship may be able to access a portion of their super benefits.
Note that even if you satisfy the conditions for early access to super benefits due to ‘
Quoting directly from the APRA website, the rules for the ‘severe financial hardship’
If you have been receiving an eligible income support payment from Centrelink, you may be able to apply direct to your superannuation fund/RSA for the early release of your superannuation funds.
To be granted an early release under this ground you must:
- be in receipt of a Commonwealth income support payment, and have been so, continuously, for the last 26 weeks; and
- satisfy the trustee/RSA provider that you are unable to meet reasonable and immediate family living expenses.
If you satisfy both of the above, the trustee/RSA provider may, in any twelve month period, release to you one lump sum payment. The lump sum payment will be no more than a gross amount of $10,000 and no less than $1,000 (or the balance of your benefit if it is less than $1,000).
If you are aged 55 years and 39 weeks or more, an alternative, optional, objective test of severe financial hardship may be applied to you. That is, you must:
- have received a Commonwealth income support payment for a cumulative period of 39 weeks after reaching age 55; and
- not be gainfully employed on a full-time or part-time basis on the date of your application to the trustee/RSA provider.
If you satisfy this test, the trustee/RSA provider may release your entire benefit.
In all cases, as part of the objective test, applicants will need to provide the trustee/RSA provider with a letter from Centrelink, the Department of Veterans’ Affairs or a Commonwealth Community Development Employment Project (CDEP) grantee organisation confirming that you meet one of these tests.
You are not required to contact APRA to make application for release under this ground.
(extract from the APRA website)
Warning: You may not be aware that if you are permitted to access your super benefits, then 20% tax (and possibly up to 25% tax depending on the type of super fund that you belong to) will be deducted from the super benefit before it reaches your hands.
See also
- Accessing super due to severe financial hardship
- No early super access for business debts or tax bills
- Can a single parent in financial hardship access her super?
- Accessing super early: 14 popular Q and As
- Accessing super early: Serious illness or surgery
i have overdue loans and rent i need help claiming some of my superannuation .i’m 35 year’s of age please help
Hi Adam
I’m sorry to read about your circumstances. If you’re receiving Centrelink benefits, then you may be able to claim your super early under the ‘severe financial hardship’ provisions. You will need to apply directly to your super fund, and note that not all super funds allow early release of benefits.
The following articles may provide you with further assistance about your next steps
http://www.superguide.com.au/accessing-superannuation/accessing-super-early/12-legal-reasons-to-cash-your-super
http://www.superguide.com.au/accessing-superannuation/accessing-super-early/is-it-possible-to-withdraw-super-to-pay-overdue-rent
http://www.superguide.com.au/accessing-superannuation/accessing-super-early/claimed-super-hardship-why-have-to-pay-tax
I wish you all the best
Regards
Trish
hi trish, im on a disabilty pension and in financial hardship with 3 dependants. i have $9000 in my super and was wondering if i am able to access the whole amount???
Hi Guilio
Thanks for your email and sorry to read about your circumstances. The severe financial hardship rules do permit up to $10,000 in super benefits to be accessed early in one application, but you will need to confirm with your super fund whether they have any specific restrictions on withdrawing $10,000. You also have to apply for this early release via your super fund.
Note that some tax is likely to payable on this benefit (see http://www.superguide.com.au/accessing-superannuation/accessing-super-early/claimed-super-hardship-why-have-to-pay-tax )
I wish you all the best
Regards
Trish
I withdrew on my super last yr and paid tax on it… will i get that tax back with this yrs return???
Hi Greg
Thanks for your comment. The following SuperGuide article answers your question:
http://www.superguide.com.au/accessing-superannuation/accessing-super-early/claimed-super-hardship-why-have-to-pay-tax
Regards
Trish
Hi Trish
I will be turning 60 in about a month and would like to get a 90% super payout. Currently I am working full time however, if I leave the current employer how long would I need to stay unemployed to be classified as retired to access my funds???
Regards
Alex
Hi Alex
Thanks for your comment. You can find the answer to your question in the article below:
http://www.superguide.com.au/retirement-planning/i%E2%80%99m-60-why-can%E2%80%99t-i-access-my-super-benefits
Once an individual has ceased employment on or after the age of 60, the fact that the person starts another job (with different employer) doesn’t affect the previous access to super savings. Anyone considering this strategy should confirm access to super benefits with their super fund before making such a significant decision.
Regards
Trish
Hi Trish
I am working at the moment, our vehicle which we bought with cash upfront has just died on us and is irrepairrable. We have tried to apply for Finance, however we are not eligible. I need the use of a car because of my line of work. I can put some money aside little by little, it wIll take us many months before we can purchase a car.
I dont know where to go to as we do not have savings at the moment. Would my superfund possibly allow for withdrawal?
Hi Samuel
Thanks for your email and sorry to hear about your circumstances. Early access to super is only available under specific circumstances. See articles below for more information
http://www.superguide.com.au/accessing-superannuation/accessing-super-early/12-legal-reasons-to-cash-your-super
http://www.superguide.com.au/accessing-superannuation/accessing-super-early/accessing-super-early-on-compassionate-grounds
http://www.superguide.com.au/accessing-superannuation/accessing-super-early/accessing-super-early-14-popular-q-and-as
Regards, Trish
Hi just wondering i work permanent part time and recieve single parents pension i am in debt between the tax office and centrelink
Am i able to
Access my super to pay some of my debts im in severe hardship
Hi Stella
Thanks for your email and sorry to read about your circustances. Usually, you can’t access super to pay tax debts. The following articles can provide further information on accessing super early.
http://www.superguide.com.au/accessing-superannuation/accessing-super-early/12-legal-reasons-to-cash-your-super
http://www.superguide.com.au/accessing-superannuation/accessing-super-early/accessing-super-early-on-compassionate-grounds
http://www.superguide.com.au/accessing-superannuation/accessing-super-early/accessing-super-early-14-popular-q-and-as
Regards, Trish