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Super - Financial Hardship


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#1 Guest_Spunkrat_*

Posted 31 January 2013 - 02:28 PM

.

Edited by Spunkrat, 25 April 2013 - 05:42 PM.


#2 Feral-Lausii

Posted 31 January 2013 - 02:57 PM

I had some released last year. Only a small amount around $500, from memory it didn't impact my payments but I was heavily taxed on it, which I claimed back at tax time. Just make sure you check the forms thoroughly before sending off.  original.gif

#3 Purebells

Posted 01 February 2013 - 03:42 PM

I am just wondering, how do you go about applying for your super to be released early? I am in the same boat and only have a small amount in one of my super accounts.


#4 PrincessPeach

Posted 01 February 2013 - 03:52 PM

If you can get it, then go for it, however it is incredibly difficult to obtain.

From a taxation point of view, the amount you get paid does need to be included in you income tax return & will impact on the amount you get paid for your family tax payments.

Just as an aside,  although you may be able to apply, I've seen very few people actually be approved for this. So just have a back-up plan ready. I saw on another thread that the NAB offer a step-up loan of up to $5,000 for people on centrelink - so that might also be another option as well.

#5 Feral-Lausii

Posted 01 February 2013 - 03:59 PM

QUOTE
If you can get it, then go for it, however it is incredibly difficult to obtain.


Wasn't that hard at all? I rang up, they sent the form out. Got the JP to witness my ID and signature. They check with centrelink I had been on payments for more then 26 weeks and I got it. Pretty easy. I also had some released in 2009 and it was just as simple. Both times I had it within 2 weeks of the initial phone call. However there is one company that wouldn't release it, as they don't have the hardship option. Think it was REST?

#6 PrincessPeach

Posted 01 February 2013 - 04:11 PM

QUOTE (Lausii @ 01/02/2013, 03:59 PM) <{POST_SNAPBACK}>
Wasn't that hard at all? I rang up, they sent the form out. Got the JP to witness my ID and signature. They check with centrelink I had been on payments for more then 26 weeks and I got it. Pretty easy. I also had some released in 2009 and it was just as simple. Both times I had it within 2 weeks of the initial phone call. However there is one company that wouldn't release it, as they don't have the hardship option. Think it was REST?


OK...I've only ever known it to be given to the terminally ill & I've worked in accounting/tax for 9 years.

#7 namie

Posted 01 February 2013 - 04:20 PM

I applied a few years ago when we had absolutely no money. I was on mat leave and our savings had run out. DP couldn't access any of his overseas savings and we had no idea what we were going to do.

They refused to release any on the grounds that I wasn't terminally ill and there was nothing they could do. I cried on the phone to them because I was so worried; we had no money for rent, bills, food, nothing.

We couldn't get any money from Centrelink because of what DP had overseas but we couldn't access that either. I even said I'd pay it all back once we could access funds but they still wouldn't.

By all means apply, but don't be surprised if they don't release any funds. We ended up having to borrow money from family to get through a few months until we worked out how to expedite sale of overseas assets and begin the dribble of funds into Aus.

#8 Guest_Spunkrat_*

Posted 01 February 2013 - 04:22 PM

.

Edited by Spunkrat, 25 April 2013 - 05:42 PM.


#9 ~nikki~

Posted 01 February 2013 - 04:29 PM

I had about 5000 released in order to pay for some surgery and that was a mission!

#10 HarperLeeAndMe

Posted 01 February 2013 - 09:02 PM

My good friend found it all quite simple as previous poster said.  She had three funds one wouldn't do it, other two released it without hassle.  

Sounds like different funds different rules, worth a go for sure!

#11 naturalgoodness

Posted 01 February 2013 - 09:14 PM

People are correct - there are a few clauses under which you can apply for release of super the main headings being financial hardship & medical. Usually (and I stress usually) the financial hardship is reserved for people who are at risk of losing their home due to mortgage arrears etc and the maximum that can be withdrawn is $10k. This is taxed (usually it is $3k) and then included in taxable income for the year. The medical is (again usually) linked to terminal/long term/serious illness and has different criteria.

Differing funds may have different rules for different amounts - there is an amount that you can have without issue (but I think this is under $1k).

I am a Financial Counsellor and we write supporting letters to superannuation funds regularly to support peoples applications for release of funds under hardship, but this is only after going through their entire situation and examining if there are available options first. Accessing super is one of the more last resort options we look at.

Can I suggest Spunkrat that you go and see a Financial Counsellor who you can talk to free of charge and evaluate whether there are any other options available to you.

#12 FiveAus

Posted 01 February 2013 - 09:23 PM

If you're on social security payments (not FTB), you can apply for early release of super once you've been on payments for 26 consecutive weeks.
You can ring Centrelink and they will issue a letter, but they can only do it after the 26 weeks is up.

#13 Just3ofus

Posted 01 February 2013 - 10:27 PM

I had an early release last year & it was pretty straight forward,I showed them my debts & I had the money in my account before I received a letter saying they approved it! You are taxed at around 23% which is alot but I can claim that back on this years tax return.

#14 Lainskii

Posted 01 February 2013 - 11:03 PM

QUOTE (naturalgoodness @ 01/02/2013, 10:14 PM) <{POST_SNAPBACK}>
Differing funds may have different rules for different amounts - there is an amount that you can have without issue (but I think this is under $1k).


You can take accounts that are less than $200 with no issue and it isn't taxed.

Nearly all funds should offer Financial Hardship. As previous posters have said, you need to be able to obtain a Q230 letter from Centrelink (to show you have been on benefits for the required period of time).
The other criteria is that you need to prove that your current expenditure exceeds your income. Some funds are quite strict and will get you to fill out lots of forms, stat decs etc and others won't be. There are some rules that the funds need to abide but in general, each fund deals with the claims differently. (rules are around what can be included as expenditure (they won't pay for fines and things that aren't considered a necessary living expense)

You can only get a maximum of $10,000 in a financial year and this is taxed at 23% and needs to be included in your income for the year.

It is worth ringing your fund and getting the forms (most funds have them on the web now) and sending it in as you may find they will release it without any issues.

Another way to release your super is under 'Compassionate Grounds' This isn't done via your super fund, you need to apply to the department of Human Services to get money out of your super under this clause.
Their criteria is quite strict and they generally release money if you are going to foreclose on your mortgage, you have substantial medical expenses that you can't pay or you need to modify your house for a medical reason etc. You can still be working and claim your super through this avenue but it is a lot more difficult to do. There is no limit on the amount that you get either but it is still taxed.





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