There are times we may experience severe financial hardship and are unable to meet immediate family living expenses.
You may be eligible to access your super early if you are in the situation where your living and family expenses are in excess of the assistance you receive via government income (Centrelink).
Super Law specifies you can only gain access to your super on grounds of severe financial hardship if you meet specific criteria.
Under Preservation Age – Have been in receipt of government income for a continuous period of 26 weeks and unable to meet reasonable and immediate family living expenses. The lump-sum withdrawal will generally be tax between 17%-22%.
Preservation Age and Over – (no cashing restrictions) if you have reached preservation age plus 39 weeks, in receipt of government income for a continuous period of 39 weeks (since reaching preservation age) and are not currently gainfully employed (part-time or full-time) at the time of application. Not tax is applicable on your lump-sum withdrawal.
- You can only make one withdrawal from your super fund due to severe hardship in a 12 month period.
- The minimum amount that can be paid is $1,000 (unless the balance is less than $1,000) and the maximum amount is $10,000.
- The super withdrawal is paid and taxed (if applicable ) as a lump sum withdrawal.
You may be able to apply for early access due to compassionate grounds if that is not an option to speak to a professional or contact our office.