Early access to super

C

cimbom

Hello,

Just wondering who I would need to speak to for early access to super - is it just the super fund themselves? What's the criteria used if it's for medical reasons? I was just going to get a loan to pay for it but then thought I might as well use super (if I can) since I'm 26 and can replace it pretty easily. Or will they just tell me to sell our IP to pay for it?

Thanks
 
cimbom said:
Hello,

Just wondering who I would need to speak to for early access to super - is it just the super fund themselves? What's the criteria used if it's for medical reasons? I was just going to get a loan to pay for it but then thought I might as well use super (if I can) since I'm 26 and can replace it pretty easily. Or will they just tell me to sell our IP to pay for it?

Thanks
Click to expand...

you need to prove financial distress.

with an IP and a job, good luck.
 
Firstly seek financial advice (from a financial planner) - you will get taxed at the highest rate if you withdraw your funds early. It is very difficult to withdraw your funds early and it would need to be on compassionate grounds. You need to prove that you are in of the funds to treat the life threatening/painful/mental/severe medical condition.
 
Is it a permanent or temporary disability? I don't think you'd have too many problems with permanent disability, but temporary may be a different issue.

If it is temporary have you checked to see if there is a temporary illness/disability insurance attached to your super, as a few have this and will pay a percentage of your income for a set amount of time.
 
I didn't realise there would be tax implications. Bit pointless then as it probably wouldn't be enough. Looks like it will be a loan then
 
To access your super you have to meet a condition of release.

Some that may be appropriate are:
1. Financial Hardship
2. Temporary or permanent disablement
3. Terminal medical condition
 
Basically assume that accessing your superannuation early is impossible, with very, very few exceptions. The closest you could get to 'accessing' it early is to transfer it to an SMSF but even then there are strict rules surrounding its use. Don't forget that Superannuation cannot be touched by a Bankruptcy Trustee or Courts (except in the case of voidable preferences or clawbacks) so it is very, very hard to get it out early.
 
Thanks everyone. I've read into a bit more and I don't think it's worthwhile. I also doubt my chances would be good. Will explore some other options
 
Aaron_C said:
Basically assume that accessing your superannuation early is impossible, with very, very few exceptions. The closest you could get to 'accessing' it early is to transfer it to an SMSF but even then there are strict rules surrounding its use. Don't forget that Superannuation cannot be touched by a Bankruptcy Trustee or Courts (except in the case of voidable preferences or clawbacks) so it is very, very hard to get it out early.
Click to expand...

yo still cant access it in an SMSF, you just get direct control of it.
 
I got caught with Land Tax like that once. Massive bill, no money but several IP's. Was told that I couldn't have an extension to pay it off unless I could prove I was basically on bankruptcy's doorstep.
 
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