+ Reply to Thread
Page 1 of 2 12 LastLast
Results 1 to 10 of 20
  1. #1
    Join Date
    Jan 2016
    Posts
    4
    Thanks
    0
    Thanked
    2
    Reviews
    0

    Default early super release

    I noticed a forum already discussing this issue but it wasn't exactly answered. I'm looking to claim early super due to reduced work hours from an injury and eventual employment termination. My partner is on a low income and I have been receiving family tax. I was hoping to access to pay outstanding debt and get on top of bills as we live week to week and are struggling and will struggle alot more if I can't work (waiting to see specialist). My main question is does family tax benefit/rent assist qualify for the centerlink letter or not, and if not can I apply on compassionate grounds due to illness/financial hardship. I'm a nz citizen so my benefits are restricted, I could go on newstart if I lose my job but for only 6m which is only 24wks exactly 2wks short of requirement which is really unfortunate for me . Thanks so much for any info ^_^
    Last edited by abbibritznik; 02-01-2016 at 12:24.

  2. #2
    Join Date
    Jan 2016
    Posts
    330
    Thanks
    414
    Thanked
    242
    Reviews
    0
    Hi there!

    Essentially you need to be in receipt of centrelink benefits for a minimum of 26 weeks before able to claim early release. I'm not sure FTB or rent assistance qualifies.

    You would need to obtain a Q230 through Human Services, and then once you have that document, provide it to your super fund. You can only claim up to $10K per year and that's taxed.

    The only other way to access is on the grounds of financial hardship or medical expenses. Financial hardship is where you quite literally are in the process of your bank foreclosing (being behind in rent does not count as financial hardship). The other is on medical expenses, ie: equipment or surgeries.

  3. The Following User Says Thank You to crt22 For This Useful Post:

    Little Miss Sunshine  (04-02-2016)

  4. #3
    Join Date
    Jul 2015
    Location
    Sunshine Coast
    Posts
    2,963
    Thanks
    2,383
    Thanked
    2,071
    Reviews
    0
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 posts
    Good luck!! I tried to claim some of my super a few years ago when my DD1 was about 6, she was diagnosed with low muscle tone and she tired easily. I wanted to buy a car, as I didn't have one, and I wanted to make it easier on her to be able to get to appointments. I had letters from her GP, paediatrician, neurologist and physiotherapist, and they still wouldn't release the money. I think it gets taxed at around 21-25% roughly. Crazy, it's our money, I think we should be able to access it. I wish you all the luck. And yes, if you are on centrelink benefits, you have to be on it at least 26 weeks.

  5. #4
    Join Date
    Jul 2015
    Posts
    6,869
    Thanks
    4,776
    Thanked
    4,210
    Reviews
    0
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 posts
    Awards:
    100 Posts in a week
    I think the only way to access super early is financial hardship. you'd need to contact your fund and find out what qualifies as financial hardship and whether you meet the criteria. it's generally seen as an absolute last resort and I don't think it's easy to access the money. that said, it's definitely worth looking into and educating yourself about.

    super is taxed at 15% in the fund. so when your employer makes a contribution, it's taxed at 15%. any after tax contributions made are not taxed.

  6. #5
    Join Date
    Mar 2015
    Posts
    3,965
    Thanks
    706
    Thanked
    2,302
    Reviews
    0
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 posts
    Quote Originally Posted by turquoisecoast View Post
    I think the only way to access super early is financial hardship. you'd need to contact your fund and find out what qualifies as financial hardship and whether you meet the criteria. it's generally seen as an absolute last resort and I don't think it's easy to access the money. that said, it's definitely worth looking into and educating yourself about.

    super is taxed at 15% in the fund. so when your employer makes a contribution, it's taxed at 15%. any after tax contributions made are not taxed.
    A lot of funds have made it harder to access the money early. You need to speak to your fund and find out what their rules are re: claiming and go from theee. Also keep in mind that the amount you get from super is not that high (cannot remember off the top of my head) and I am pretty sure you have to wait a certain amount of time before trying to claim again.

    ETA. You need to go through every avenue including centrelink first too.

  7. #6
    Join Date
    Jan 2016
    Posts
    330
    Thanks
    414
    Thanked
    242
    Reviews
    0
    https://www.ato.gov.au/Individuals/S...eservation_age

    As for tax, it comes down to your age, preservation and non preservation amounts.

    On a lump sum withdrawal, there is:
    • no tax on the tax-free component,
    • and 21.5% tax (incl. 1.5% Medicare levy) on the taxable componenent (element taxed).
    For example, if some of your super is unrestricted non-preserved, then you can withdraw that portion of your super at any time. However, while you can choose to withdraw that part of your super which is unrestricted non-preserved but leave any super which is preserved or restricted non-preserved, the rules in relation to the tax components are different. You cannot pick and choose the tax components; instead, they are calculated using a proportional rule.


    Suppose you have $300,000 of super and $100,000 is unrestricted non-preserved. Furthermore, 20% of your superannuation is the tax-free component and the other 80% is the taxable component (element taxed). If you elected to withdraw all $100,000 of your super which is unrestricted non-preserved, then for tax purposes, the proportional rule would apply. So $20,000 of the lump sum would be the tax-free component (i.e. 20%) and $80,000 (i.e. 80%) would be the taxable component (element taxed). This means you would have to pay 21.5% tax (incl. 1.5% Medicare levy) on the $80,000 which works out to be $17,200.
    In rarer cases, you may have a taxable component (element untaxed) instead of a taxable component (element taxed). If this is the case, then you will pay 31.5% tax (incl. 1.5% Medicare levy) on this component. Finally, be aware that if the amount of your taxable component (element untaxed) withdrawn as lump sums exceeds $1.1m in your lifetime, then the rate on the amount above $1.1m jumps from 31.5% to 46.5% (incl. 1.5% Medicare levy).

  8. #7
    Join Date
    Sep 2011
    Posts
    7,160
    Thanks
    1,701
    Thanked
    3,395
    Reviews
    4
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 posts
    Quote Originally Posted by crt22 View Post
    Hi there!

    Essentially you need to be in receipt of centrelink benefits for a minimum of 26 weeks before able to claim early release. I'm not sure FTB or rent assistance qualifies.

    You would need to obtain a Q230 through Human Services, and then once you have that document, provide it to your super fund. You can only claim up to $10K per year and that's taxed.

    The only other way to access is on the grounds of financial hardship or medical expenses. Financial hardship is where you quite literally are in the process of your bank foreclosing (being behind in rent does not count as financial hardship). The other is on medical expenses, ie: equipment or surgeries.
    This.
    I've accessed super in the last 3 years. ..
    Financial hardship to pay our mortgage. ..which you get a letter after you default and that is used to apply.
    And also through centrelink after 26 weeks on benefits. As far as I know you can't if its ftb or similar.
    It's only if you have been on newstart or a pension like carers. It's worth calling them and if they say you are eligible they'll send you a letter. That letter is required by your super fund to withdraw early.

    It can be very difficult to do.
    Good luck.

  9. The Following User Says Thank You to Tamtam For This Useful Post:

    crt22  (03-02-2016)

  10. #8
    Join Date
    Jul 2015
    Posts
    6,869
    Thanks
    4,776
    Thanked
    4,210
    Reviews
    0
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 posts
    Awards:
    100 Posts in a week
    Medicare levy is now 2%, how odd the ato is giving the old rate.

  11. #9
    Join Date
    Jan 2016
    Posts
    330
    Thanks
    414
    Thanked
    242
    Reviews
    0
    Have a look at :

    http://www.superguide.com.au/accessi...ng-super-early

    My apologies - the calculation above was an example from an outdated website, but it gives you an idea on the medicare surcharge.

    Best thing is to call your fund and discuss

    Is it a possibility to arrange a financial hardship agreement between you and your creditors?

  12. #10
    Join Date
    Jul 2015
    Posts
    6,869
    Thanks
    4,776
    Thanked
    4,210
    Reviews
    0
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 posts
    Awards:
    100 Posts in a week
    that's what I would advise too. many companies have financial hardship policies that you may be able to access some kind of assistance on.

    I think it's worth looking into that first then go down the super path. tbh from what I've heard it's very very difficult to access super early, even under these provisions.


 

Similar Threads

  1. Has anyone ever accessed their Super early?
    By SpicyTurtle in forum General Chat
    Replies: 12
    Last Post: 17-01-2015, 13:03

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
free weekly newsletters | sign up now!
who are these people who write great posts? meet our hubbub authors!
Learn how you can contribute to the hubbub!

reviews
learn how you can become a reviewer!

competitions

forum - chatting now
christmas gift guidesee all Red Stocking
Springfree Trampoline
Give the Ultimate Christmas Gift Springfree Trampoline
The World's Safest Trampoline™ is now also the world's first Smart Trampoline™. Sensors on the mat detect your every move and your jumps control fun, educational and active games on tablet. Secure the Ultimate Christmas Gift today!
sales & new stuffsee all
CarmelsBeautySecrets
Growing your own natural nails is easy. Years ago, I devised a simple and very effective technique which really helps boosts the nails' growth in as little as three days! And most importantly keeps them that way.
featured supporter
Philips AVENT Australia
Pregnancy and early parenthood is an exciting and challenging time, but it’s good to know there is expert advice on hand to ensure that your baby gets the best start in life.
gotcha
X

Pregnant for the first-time?

Not sure where to start? We can help!

Our Insider Programs for pregnancy first-timers will lead you step-by-step through the 14 Pregnancy Must Dos!