Jump to content

Early release of superannuation
Has anyone done it?


  • Please log in to reply
21 replies to this topic

#1 zenbaba

Posted 25 January 2012 - 06:57 PM

Hi all,

After recently separating from my husband, I'm up to my eyeballs in debt and am thinking of perhaps pursuing the early release of my superannuation. I'm interested to see if anyone has done this. Was it difficult?

#2 annamosas

Posted 25 January 2012 - 08:22 PM

Hi there,
I thought about doing this after separating from my husband to buy a van to drive in with my daughter who has a disability. First step would be to find out if your super fund allows this. I found out pretty quick that my fund doesn't allow it at all despite the circumstances. I would have had to have the law changed regarding my super fund for it to happen. Secondly, bear in mind that anything you withdraw is considered part of your income for the year and then effects any centrelink or family tax benefits your may receive.
I am sorry you are in this situation. I feel your pain.

#3 Pearson

Posted 25 January 2012 - 08:40 PM

It was a lot easier before the 2008 GFC, but so many people lost so much money then, it is hard now, and with the current economic outlook, I'd say would be pretty hard.

Also, if you have only put in the standard 9%, I think it is hard too.

But, it is a scary thing, dependent on how much you have there, and your age.  How much are you looking at using of it?  All of it?  How are you going to fund your retirement?  Did you get allocated any of your X's super in your property settlement (you can do this, I dont necessarily agree with it, but it can be done)? If this is done, will you put in extra contributions?  The one way to build your super up again is to do this, and take a risk at high yield investments.

I would talk to a financial planner, or counsellor first.

#4 namie

Posted 25 January 2012 - 08:47 PM

I tried last year when we went through a super tight patch where I really didn't think we'd come through the other side with a house (renting), or anything at all actually, but my super company wouldn't release anything. The government has a law in place that prevents it and there are only a few clauses that can bypass it, none of which applied to me (and it doesn't sound like they'd apply to you either) and couldn't be waivered at all.

Check with your super company, they should have the info on their website, or can provide it to you, but don't hold out much hope.

#5 MintyBiscuit

Posted 25 January 2012 - 08:49 PM

You're only allowed to withdraw super early in very specific circumstances - severe financial hardship backed up by six months on specific centrelink benefits, threat of foreclosure on a mortgage or severe disability/terminal illness situations.
If you contact your super fund they'll be able to tell you pretty quickly if you're eligible, but pretty much if you're working and the debts you're referring to aren't mortgage, you won't be able to withdraw it

ETA - As a PP mentioned, these rules are government legislation, not super fund rules

Edited for spelling

Edited by Holly-Meow 84, 25 January 2012 - 09:18 PM.


#6 Chasing daisies

Posted 25 January 2012 - 08:52 PM

Yes you have to be getting a c/l payment for 6 months or longer to be eligible for hardship

#7 pinkpeony

Posted 25 January 2012 - 08:53 PM

It is very difficult to do. Could you look at a loan through CL and it comes out of your payments via a reduced rate.

Hopefully it is just a blip for you and things will turn around soon.

#8 zenbaba

Posted 25 January 2012 - 08:55 PM

Thanks. I'm 32 and was hoping to get out about $10,000 mainly to pay credit card debt. We've only been separated for a short time and haven't done any settlement of property etc.

#9 Lainskii

Posted 25 January 2012 - 08:58 PM

They'll also only release money for your mortgage if you have been threatened with foreclosure so you can't just say money is tight, you have to prove that they are going to take your house.


Here is a link that explains it.

http://www.centrelink.gov.au/internet/inte...erannuation.htm

Financial Hardship - you need to have been receiving specific centrelink benefits for 6 months (need to get a Q230 form from Centrelink to prove this to your super fund) and if you have been getting benefits then contact your super fund for the forms. You essentially need to prove that your expenditure is greater than your income with proof, so they will ask for bills etc. It is up to the super fund to release benefits, so they make the decision based on the form you complete. The most you can get in one financial year is $10000 and this is taxed and also treated as income for tax purposes.

Compassionate Grounds - in specific circumstances the DHS can release benefits, generally for major illness (to convert houses, cover expenses etc), mortgage foreclosure etc. The link above includes a link on how to apply for compassionate grounds. DHS can determine how much money you require based on your circumstances.






#10 Goggie

Posted 25 January 2012 - 08:59 PM

Book into see a financial adviser, they know the super legislation backwards and can help you work out a plan for yourself for to survive on your own. Best of luck x

#11 pinkpeony

Posted 25 January 2012 - 09:04 PM

Can you transfer some or all of it to an interest free or low interest until the finances are sorted out? Or even a personal loan would be better.

#12 pinkpeony

Posted 25 January 2012 - 09:13 PM

Having worked in the trustee area of a super fund it is very hard to get money out. We have rejected people on terminal illness because their Dr's have said they have more than 6 months to live and this was preGFC.

#13 rainbow*babe

Posted 25 January 2012 - 09:25 PM

There are a couple of ways that you might be able to access your funds:

Severe Financial Hardship.
- You will need to have been in receipt of centrelink benefit for a minimum of 26 continuous weeks (and supply a Q230 letter from C/L to confirm this). This is legislation, so your fund won't even look at you unless you meet this criteria.
- You will need to supply a 'Centrelink Income Statement' as proof of your payment amount
-You will need to complete your funds Benefit Payment Application and/or Financial Hardship Declaration form. The declaration form lists all of your expenses (rent/mortgage/food etc) as well as your debts.
- You will need to supply evidence of your debts (ie provide copies of overdue bills) for most funds, these will need to be no more than 3 months old. So if its an older debt, you will need to get an updated bill.
- Certified Proof of Identity (CPOI) usually required for payments over 1k
- You can only apply under Severe Financial Hardship once in any 12 months period for a maximum of 10k before tax.

Probably best to contact your super fund for their requirements as they can differ slightly between funds (for example, I know some funds will accept an infringement notice as a debt, but others wont)


Compassionate Grounds
You may be eligible for early release of superannuation benefits on compassionate grounds if you need money to:
- pay for transport for medical treatment for you or your dependant
- prevent forclosure on your home
-
modify your home or vehicle to accommodate a severe disability for you or your dependant
-
pay for expenses associated with palliative care for a terminal illness for you or your dependant
-
pay for expenses associated with your dependant’s death, funeral or burial.
Your super fund can advise if you may be eligible, but you can contact the Department of Human Services (DHS) for more info, and to apply. They will send a letter confirming your eligibily and payment instructions to your super fund, who will pay the benefit accordingly. The number for DHS is 1300 131 060.
I hope this helps OP, good luck x


#14 tasy

Posted 25 January 2012 - 09:35 PM



i was in the same situation and had been on cl for a few years and they wouldn't let me take any out

#15 *Lib*

Posted 25 January 2012 - 09:38 PM

Yet people can get funds released for weight loss surgery..... huh.gif You apply through APRA, not sure if its the same for hardship..... I hope you can see the end of the tunnel soon.....can you refinance the creditcard into a personal loan? Might make the repayments more manageable?

#16 Lightning_bug

Posted 25 January 2012 - 09:43 PM

QUOTE (rainbow*babe @ 25/01/2012, 10:25 PM) <{POST_SNAPBACK}>
There are a couple of ways that you might be able to access your funds:

Severe Financial Hardship.
- You will need to have been in receipt of centrelink benefit for a minimum of 26 continuous weeks (and supply a Q230 letter from C/L to confirm this). This is legislation, so your fund won't even look at you unless you meet this criteria.
- You will need to supply a 'Centrelink Income Statement' as proof of your payment amount
-You will need to complete your funds Benefit Payment Application and/or Financial Hardship Declaration form. The declaration form lists all of your expenses (rent/mortgage/food etc) as well as your debts.
- You will need to supply evidence of your debts (ie provide copies of overdue bills) for most funds, these will need to be no more than 3 months old. So if its an older debt, you will need to get an updated bill.
- Certified Proof of Identity (CPOI) usually required for payments over 1k
- You can only apply under Severe Financial Hardship once in any 12 months period for a maximum of 10k before tax.

Probably best to contact your super fund for their requirements as they can differ slightly between funds (for example, I know some funds will accept an infringement notice as a debt, but others wont)

Compassionate Grounds
You may be eligible for early release of superannuation benefits on compassionate grounds if you need money to:
- pay for transport for medical treatment for you or your dependant
- prevent forclosure on your home
-
modify your home or vehicle to accommodate a severe disability for you or your dependant
-
pay for expenses associated with palliative care for a terminal illness for you or your dependant
-
pay for expenses associated with your dependant’s death, funeral or burial.
Your super fund can advise if you may be eligible, but you can contact the Department of Human Services (DHS) for more info, and to apply. They will send a letter confirming your eligibily and payment instructions to your super fund, who will pay the benefit accordingly. The number for DHS is 1300 131 060.
I hope this helps OP, good luck x



These are the two ways.  Superannuation funds have to offer one of these options but not both.  So you have to check with your fund what the grounds are for early release.  If they don't offer the one for your situation then you can change funds to find one which will (although enquire about their 'waiting periods' because some do have them).

As for having it released for weight loss surgery - if it's a life-saving operation then yes, super can be released.  As it can for transport, including a car, for transporting the disabled to therapy.

It's never easy but the law's designed to make it hard.  OP.  If you can find an alternative then find it.  You are going to need your super.

#17 *Pebs*

Posted 26 January 2012 - 09:29 AM

I did. About 6 years ago. To pay out my credit card.

I found the process easy.. too easy in fact. I can't remember all the ins and outs, but at the time I was receiving centrelink payments and had been for 6 months.

I was with club plus as my super fund.

#18 Pearson

Posted 26 January 2012 - 02:04 PM

I would talk to a financial counsellor, they can look at all your finances, and advise you on budgeting and the best way to pay off the debt.

I read your other thread where your DH wants you to pay rent to him, but, I would not agree to this without legal advice, and have it drawn up in a contract.  CL will probably not pay you rent assistance on this amount either, you would have to have that figured out as well.  But, the thing for him, is it would mean that he would have to declare this as income as well.

Have you applied for all your CL benefits - Single parent, Family tax benefit  and also your child care percentages will now change.  Also go here and find out how much child support he should be paying you.

Getting all your money ducks in a row will make it easy for you to get your finances in order.  Also, is the CC in your name?

#19 Cat©

Posted 26 January 2012 - 02:13 PM

We did it a few months ago under compassionate grounds, with three supporting letters from paeds x 2 and an OT, plus other letters from other specialists supporting our son.

We had no issues and it was decent amount, however, it was solely for a wheelchair compatible car to carry our new carers for the boys in also ( 9 seater).

Even then they didnt give us enough, as we asked for enough to cover mods to the car, but they only gave us enough to buy the car......still at least we can now all go out together!

I think it really depends on your personal circumstances and how much evidence you can provide. Cant hurt to try I guess.

#20 Spa Gonk

Posted 26 January 2012 - 03:29 PM

I believe APRA have really tightened things up at present and it is quite hard to get an early release.

I just wanted to mention though, check what rate it is taxed at, as well as how it affects your other payments.  I knew someone once who wanted to access it early, but lost a third of what she thought she would be getting in tax.  Let alone affecting FTB.  Not sure if this has changed or not, but the $10K you think you are getting might not neccessarily be that.

#21 StudyMum

Posted 26 January 2012 - 03:38 PM

I did back in 2008 (just before the GFC so I guess I got lucky) but I had to prove that I had been on CL benefits for at least 6 months and that my outgoings were greater than what I had coming in. I also had to provide statements/invoices etc of exactly what was going to be paid off and they provided me with enough out of my super to cover only those expenses.  Check with a financial adviser before doing anything and be aware of the taxes etc that you will have to pay.

#22 UpsyDaisy

Posted 27 January 2012 - 10:06 AM

Yes. We did. Last year.

We applied directly through my Super Fund - Severe Financial Hardship. We we're approved the release of the max. amount 10K - very quickly and it was in my account 3 days after they received my application and supporting documents.




0 user(s) are reading this topic

0 members, 0 guests, 0 anonymous users

 

RPA hospital contacting mums after discovering vaccine storage fault

Sydney's Royal Prince Alfred Hospital (RPA) is trying to contact women who had babies at the facility after discovering a fault in a refrigerator containing vaccines.

'Nutella' not a baby name, French court says

A French court has blocked parents from naming their baby girl after the hazelnut spread Nutella, arguing it would make her the target of mockery.

Why I'm never calling myself 'just a mum' again

I’ve grown three human beings. I feed them, dress them, teach them, care for them and love them 24 hours a day. Yet for eight years, when I meet new people and they’ve asked me what I do, I tell them: “I’m just a mum”.

Rosie Batty named 2015 Australian of the Year

One year ago, Rosie Batty could not have imagined she'd be where she is. Tonight the grieving mum who put domestic violence on the national agenda was named Australian of the Year.

Five reasons to hug more

Hugging – some of us thrive on it, even depend on it – and then there are those who don't care for it really. So, are they missing out?

Help - my three-year-old has started throwing tantrums

My daughter never went through the "terrible twos" but began throwing wild tantrums shortly after her third birthday.

That's commitment

First peek at Sonia Kruger's daughter Maggie

"She smells so good, I could eat her," Kruger tells co-host David Campbell.

Mum assists in own caesarean surgery

A mum who partly delivered her own twins during a caesarean has encouraged other women to take control of their birthing experience.

How to handle common childhood regressions

Regression can be a natural and common part of development prompted by a variety of factors, but that doesn't make it less frustrating.

Disgruntled dad's pram ad goes viral

When buying a second hand pram, there are lots of things to take into consideration. 

Man discovers he's a dad after finding 55-year-old letter

Discovering you are about to father a baby is startling enough - never mind finding out you have a 61-year-old son.

15 thoughts mums have during a tantrum

Ranging from mild to feral and triggered by events both minor and major, tantrums certainly keep life interesting.

Natural pain relief in the early stages of labour

While managing labour pains on your own can be daunting, there are a number of natural pain relief options to help you cope until you are admitted to hospital.

Forgotten Baby Syndrome claims the life of toddler

One baby dies every eight days in the back of a car in the US, victims of 'forgotten baby syndrome'.

For a brief time, I was touched by an angel

For a brief time, I was touched by an angel. You stole my heart, and changed me into the women I am today.

Chrissie Swan has reached her "sex quota"

Chrissie Swan says she and her partner have sex once a year due to her fear of falling pregnant.

Chinese woman gives birth to quintuplets

After six years of trying for a baby, a couple’s dreams have come true many times over after the mum gave birth to quintuplets this week.

Five-year-old shoots nine-month-old brother dead

A nine-month-old baby boy died on Monday after he was shot in the head by his five-year-old brother in their grandfather's home.

'Is that baby yours?'

She is my daughter. I gave birth to her. I nurse her. But she doesn't have any of my genes.

Episiotomy in childbirth: not just 'a little snip'

Episiotomies have a place in maternity care – and can occasionally save lives – but should not be performed routinely.

Win an Octonauts prize pack

To celebrate the launch of Octonauts Live! Operation Reef Shield, a spectacular underwater adventure live on stage, we are giving away an amazing Octonauts prize pack to one lucky fan.

Download now: Essential Kids Activity Finder app

Got bored kids? Quickly find the best activities for kids wherever you are in Australia with the Essential Kids app.

 
Advertisement
 
Advertisement
 
 
 

What's hot on EB

Stars help save choking babies

It's an important lesson to learn, but one that busy new mums and dads might overlook until it's too late.

New Girl star Zooey Deschanel pregnant

Actress Zooey Deschanel is expecting her first child with her producer boyfriend Jacob Pechenik.

16 times 'dad reflexes' saved the day

Of course, in some cases they may be the ones who actually got their child into a precarious position in the first place, but we'll ignore that for now.

Couple's 'non-traditional' pregnancy announcement goes viral

Knowing you are not the father of your pregnant wife's baby would usually indicate a rocky relationship ahead for traditional parents.

The trials and tribulations of identical triplet newborns

Pip Donnelly is still playing spot the difference with her newborn identical triplets, Isabelle, Georgina and Frankie.

Win an Octonauts prize pack

To celebrate the launch of Octonauts Live! Operation Reef Shield, a spectacular underwater adventure live on stage, we are giving away an amazing Octonauts prize pack to one lucky fan.

Earthquake baby thriving five years on

Jenny Alexis is lucky to be alive after spending four days buried in the rubble of the 2010 Haitian earthquake, but now she's a thriving five year old.

Please don't say I'm lucky because I was adopted

On the one hand I was having a regular life with friends and sports and sleepovers and school. But I was also always wondering: Did my mother love me? What was wrong with me?

An open letter to non-parents who offer advice on child-rearing

Kitty, when you’re the parent of my child you’re welcome to wade in with an opinion – but until then, I’d prefer you to have a supportive ear and a glass of wine ready.

Couple arrested over baby gun video

A US couple faces charges after investigators say they found mobile phone videos showing the woman's 12-month-old daughter putting a handgun in her mouth.

NSW Health dumps 10-year limit on frozen embryos

A 10-year time limit on storing frozen embryos that were created with donor sperm has been dropped by the NSW government.

How my happy-go-lucky husband became a monster

Sharan Nicholson-Rogers watched her husband change from a happy-go-lucky police officer into an unpredictable man prone to violent and emotional outbursts.

Dads-to-be experience hormonal changes, too

Dads-to-be experience hormonal changes in line with their pregnant partners, a new study shows.

'They were just doing their job': mum of toddler killed in police chase gone wrong

"They were just doing their job. I feel so sorry for them. It is all just too sad."

Miscarriages to be formally recognised by NSW government

Women who miscarry will be able to obtain an optional "recognition of loss" certificate as a formal recognition of their often heartbreaking loss.

Cafe cubby house 'too noisy' for neighbours

Teenage parties, domestic disputes, or raucous late night pubs are the things that usually come to mind when you think neighbourhood noise complaints.

Dad films baby playing with snake

Most parents would not consider a snake an appropriate playmate for their baby, but a US dad who filmed his daughter playing with a python has defended himself against criticism.

Clever breastfeeding products

Check out this range of products designed to help make your breastfeeding journey more enjoyable, manageable and convenient.

 

Back to School Offer

Findababysitter.com.au

We've got you covered for this school year. Use www.findababysitter.com.au to meet local nannies now.

 
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.