Posted on January 29th, 2018 at 9:42 AM by WMIA
We often get asked about early access to super. We thought we might take the time to clarify what the particular circumstances are for accessing your super early. We often find that most won’t make the criteria - but are more than happy to investigate for you.
You may be allowed to withdraw some of your super on compassionate grounds. Compassionate grounds include:
You may be able to withdraw some of your super if you have received eligible government income support payments continuously for 26 weeks and are unable to meet reasonable and immediate family living expenses.
A super withdrawal due to severe financial hardship is paid and taxed as a normal super lump sum.
The minimum amount that can be paid is $1,000 and the maximum amount is $10,000. You can only make one withdrawal from your super fund because of severe financial hardship in any 12-month period.
You may be able to access your super if you have a terminal medical condition. Two medical practitioners need to certify that you have a medical condition that is likely to result in your death within 24 months. One of the medical practitioners must be a specialist in an area related to your illness or injury.
Your super must be paid as a lump sum and is tax-free if it is withdrawn within 24 months of the date of certification.
You may be able to access your super if you are temporarily unable to work or need to work less hours because of a physical or mental medical condition.
You will receive the super in regular payments (income stream) over the time you are unable to work. A super withdrawal due to temporary incapacity is taxed as a normal super income stream.
You may be able to access your super if you are permanently incapacitated. This type of super withdrawal is sometimes called a 'disability super benefit'.
Your fund must be satisfied that you have a permanent physical or mental medical condition that is likely to stop you from ever working again in a job you were qualified to do by education, training or experience.
At least two medical practitioners must certify this for you to receive concessional tax treatment.
You can receive the super as either a lump sum or as regular payments (income stream). A super withdrawal due to permanent incapacity is subject to different tax components.
You may be able to access your super if you change employers and the balance of your super account is less than $200.
Please note that while Severe Financial Hardship claims are processed by us, for other claims such as Compassionate Grounds, applications need to be submitted with a Centrelink office.