Jump to content

Super - Financial Hardship


  • Please log in to reply
13 replies to this topic

#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.





1 user(s) are reading this topic

0 members, 1 guests, 0 anonymous users

 

Five ways my second pregnancy is second best

As I roll into the second half of "Pregnancy: The Sequel", here is breakdown of the differences I have found thus far.

Domestic politics

Why I felt guilty about having a cleaner

Coming home to a clean house was a pleasure – and yet, I felt uneasy.

'Ugly' hearing aid ad leaves parents fuming

When Alecia Donoghue found out her baby would need hearing aids she worried about him becoming the target for schoolyard bullies.

Have you seen these missing children?

The Australian Federal Police has released the following information to locate some of Australia's missing children through the Family Law Court.

Margarita time

Keira Knightley welcomes first child

British actress Keira Knightley has become a first-time mother.

IVF patients in the dark over which clinics are least successful

Couples with fertility problems have little way of knowing which IVF clinics are the best performers despite significant differences between clinic success rates.

Couple forced to defend their decision to become parents

They met, fell in love and got married. Then, just like couples everywhere, Simon and Vicky Moore decided it was time to have a baby.

The one parenting tip that made all the difference

Amongst the useless, ill-informed advice we're given as new parents, many of us also receive nuggets of wisdom that make our lives just that little bit easier.

Five lies you tell yourself when you're pregnant

You can see it all now: glowing mumma with her gorgeous babe ... you know exactly what you're going to be like. Or perhaps you know exactly what you're not going to be like.

Family expecting fourth set of twins

A couple is expecting their fourth set of twins in five years.

The day my daughter almost drowned

We had six adults standing there, so I felt like I could relax a bit. After all, what could go wrong with so much supervision?

Sydney siege survivor names baby after victim Katrina Dawson

A Sydney barrister who survived the Lindt cafe siege has named her newborn daughter after her best friend who died in the tragedy.

The universal working mother experience

These days mothers need more than just traditional career advice.

Obama feels full force of toddler tantrum

Shopping centres, restaurants, the White House ... the list of places toddlers like to throw tantrums is endless.

Banishing bloat

How to avoid a bloated tummy

Here are some foods to eat in order to escape feeling ghastly and gassy.

The great new picture book for anxious kids

My son is a worrier by nature. I learnt long ago that it was completely pointless to say to him "Don't worry about it!".

Budget stripped more than $15b from families

The combined impact of the two budgets for low and middle income people was "devastating", new analysis by the Australian Council of Social Service shows.

Pregnant women urged to get flu shots

As the winter chill starts to arrive, NSW Health is urging pregnant women to get their flu shots.

65-year-old gives birth to quadruplets

A 65-year-old German woman, who already has 13 children, has given birth to quadruplets.

What you need to know about pregnancy and health insurance

It's not just waiting periods that couples need to consider - there are other factors to consider when thinking about health insurance.

Yummy mummy

Nicole Trunfio breastfeeds baby on Elle magazine cover

Australian model Nicole Trunfio has taken the concept of multitasking to a fashionable new level for Elle Australia.

Warnings after baby girl died while sleeping in bouncer

Parents have been warned about the dangers of letting babies sleep in bouncers and swings following the death of a three-month-old girl.

Coping with fatigue as a parent

Sleep deprivation is a real hazard of caring for a baby. But there are ways to manage the challenges of fatigue better.

A very 21st century issue: parents, parks and smart phones

It's not all the parents, and it's not all the time, but there is often at least one doing it. And sometimes, that 'one' is me.

Appliances

Faulty washing machines linked to house fires

More than 80,000 faulty Samsung washing machines pose a fire threat in homes throughout Australia despite a nationwide recall of the machines.

7 things you might not know about postnatal depression

Despite its widespread nature, there is still a great amount of mystery surrounding PND - and it's important to try unravelling as much of that as we can.

Seven questions you should be asking about your health cover

If the last time you assessed your health cover was five years ago, there?s a chance it may no longer suit your needs. To ensure it?s still right for your family, click here for seven questions to ask.

 
Advertisement
 
Advertisement
 
 
 

What's hot on EB

How to use gas effectively in labour

Many women in labour don't use gas effectively and suffer more side effects than benefits. Here's how to get the most out of this pain relief option.

'He has gastro but that's okay, right?': sick kid etiquette

We cannot place all children who are sick in a bubble till they recover, but we can give other parents a choice about exposing their kids to them.

Welcome to Winter

Now that the colder months are here, Essential Baby as all the information you need for staying healthy and happy during the chilly season.

Ada Nicodemou: 'I can never be completely happy again'

Home and Away actress Ada Nicodemou has opened up about the loss of her stillborn baby.

10 things to consider when you're thinking about trying for a baby

Before you start tracking your menstrual cycle and reading up on the best positions to get pregnant, there are a few other things you may want to consider.

How special surgery and IVF can create a post-vasectomy baby

Cricket legend Glenn McGrath and his second wife Sara are expecting their first child together, thanks to IVF and a delicate surgical sperm retrieval process that helped the couple to conceive.

Belle Gibson's mother 'disgusted and embarrassed'

The mother of disgraced wellness blogger Belle Gibson has accused her daughter of lying about her childhood in an attempt to garner public sympathy.

Doctor's mobile phone 'left inside c-section mum'

A new mum claims a doctor left his mobile phone inside her after delivering her baby via caesarean section.

I'm a mum and I'm following my dreams

I want my kids to know that no matter what happens in life, you can still be who it is that you've always wanted to be.

Those first daycare days

I had this innate 'mum' moment the other day.

'If one person had listened, my life would have been so different'

Katherine's father will die in prison for the horrifying sexual abuse of his daughter. Yet she is the one with the true life sentence.

This new plan undermines breastfeeding and baby health at everyone's expense

Mothers, babies, the health system and the wider society are going to pay the price of this new budget.

Couple to celebrate terminally ill baby's birthday in unique way

Baby Jai Bishop has lived at Starship Hospital for the past seven months, with his parents flying back and forth from Hokitika, 1100km away, to be by his side.

Life On Mars

It's men who need 'retraining', not women

We are all responsible for our own behaviour. Telling victims to harden up is wrong.

Baby Gammy's dad tries to claim charity money

The biological father of baby Gammy has reportedly tried to access charity money raised for the little boy's medical costs.

Where are the childcare places?

It?s all very well to encourage women to work if they choose to, but how can the measures lead to increased workforce participation when women are once again left holding the baby?

The pain of not having babies and not knowing why

After seven years of wishing, hoping, crying, punching pillows and shouting "why me?!", the end result is more than I ever thought possible.

Getting your family finances in order

Whether you're after a new car for a growing family, a bigger house, or are just fixing up your finances, here are the basics on borrowing.

Mum shares graphic selfie to warn against tanning

A mum has shared a graphic photo of her skin cancer treatment as a warning to others.

Does parenthood make us happier?

We can certainly gain higher levels of happiness when we become parents, but the trick is to not get overwhelmed by the pressures of raising our kids.

No, having a dog is not like having a human child

It's obvious these people dote on their pets, but they're barking up the wrong tree.

 

Top baby names

Baby Names

The numbers are in and we can now bring you the 2014 top baby name list for Australia.

 
Advertisement
 
 
Essential Baby and Essential Kids is the place to find parenting information and parenting support relating to conception, pregnancy, birth, babies, toddlers, kids, maternity, family budgeting, family travel, nutrition and wellbeing, family entertainment, kids entertainment, tips for the family home, child-friendly recipes and parenting. Try our pregnancy due date calculator to determine your due date, or our ovulation calculator to predict ovulation and your fertile period. Our pregnancy week by week guide shows your baby's stages of development. Access our very active mum's discussion groups in the Essential Baby forums or the Essential Kids forums to talk to mums about conception, pregnancy, birth, babies, toddlers, kids and parenting lifestyle. Essential Baby also offers a baby names database of more than 22,000 baby names, popular baby names, boys' names, girls' names and baby names advice in our baby names forum. Essential Kids features a range of free printable worksheets for kids from preschool years through to primary school years. For the latest baby clothes, maternity clothes, maternity accessories, toddler products, kids toys and kids clothing, breastfeeding and other parenting resources, check out Essential Baby and Essential Kids.