Early super withdrawal

[LearningMan]

Anyone applied based on financial hardship ?

 

[GoAnna!]

Close relative did. Was knocked back because they showed with their new budget after only $5K of super they could stay in the black.

They prefer to see you in dire dire straights. About to be evicted or lose home would help enormously. Some local council areas would have a free financial counsellor who may be experienced in this area.

 

[Collector]

I haven't, however my understanding of super - if you were able to get access to you super prior to retirement or transition to retirement any funds that are accessed are taxed at your taxable rate plus medicare levy

 

[Raddles]

Hi there
did manage to get funds released for a widow who was about to lose her home (it had secured the business loan of her deceased husband)
she did also have to refinance the loan - because the bank was giving her a hard time.
Also she couldn't get access to all her super - only a proportion of it
thanks

 

[Propertunity]

Anyone applied based on financial hardship ?

LM,

You can get your super earlier only in limited circumstances

Incapacity
Contact your fund if you suffer permanent incapacity. You may also be paid a non-commutable income stream during a period of temporary incapacity.

Severe financial hardship
Contact your fund. If the rules allow early release of benefits, you must satisfy the trustee that you have been receiving a Commonwealth income support payment for a continuous period of 26 weeks and you cannot meet your reasonable and immediate family living expenses.

Compassionate grounds
Contact your fund. If the rules allow early release of benefits, the 'compassionate grounds' are set out in the law. Compassionate grounds involve medical treatment for serious conditions that is not readily available through the public health system, transport for medical treatment, changes to a home or vehicle because of a severe disability, palliative care, funeral and burial expenses, or to prevent the forced sale of your home by your mortgagee. The Australian Prudential Regulation Authority (APRA) has more information about specific compassionate grounds.

APRA must consider your application first, before your fund trustee can make a final decision.

Source: Australian Prudential Regulation Authority Annual Report 2008.

Leaving Australia permanently
Contact the ATO. If you work in Australia as a temporary resident you may be eligible to claim your super. This payment is not available for permanent Australian or New Zealand citizens because they have the option of retiring in Australia.

Small balance
Contact your fund. If the fund rules allow it and you account has less than $200 (preserved benefit) you may be allowed to withdraw the money when you finish your employment. A fund may be able to pay you if you were previously classified as a lost member and the preserved benefit, at the time it is paid to you, is less than $200. Unless you really need the money, it's generally better to roll it over into your next fund, and you won't have to pay tax.

LM,
This is the second thread about escaping debt or getting cash from you - is everything not OK?

 

[silversands]

Hi L M.

Are you hanging in there ok? Have been wondering if you took up a weekend job or if your wife had found work she can do around baby( pending )

 

[LearningMan]

I am hanging in there ... just again trying to ensure I understand all options moving forward.

Yes - I am 90% thru my taxi course. Obtaining a license is more difficult than ppl think ! Driving a cab on weekends allows extra $$'s and lots of flexibility.

This should assist the cashflow until IP's eventually gain some value.