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  1. #1
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    Default accessing super for financial hardship and STILL they kick you.

    just need to vent. How pathetic of the ato/government!

    I want to access early release super under financial hardship to pay debt. So max you can get out is $10k. Already thats pretty low for true hardship cases.
    Then you have to be on payments for 26weeks, so ok. Fill that criteria.

    But now i find out it's taxed. I expected it to be taxed, but it's taxed at 22%! How insane is that. They tax it going in, then when you're at your lowest point that you're actually taking from your own future, they keep $2200 from a $10,000 release.

    Pathetic of the govt in my opinion

  2. #2
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    TeamAwesome is offline No one's perfect, but everyone can be awesome.
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    DH was made redundant beginning of last month his redundancy was taxed at about 30% (I'm not entirely sure as i never saw the piece of paper so wasn't sure of the exact initial figure as DH rounded it out in his head and to me) like you we expected it to be higher tax but not that high. And same deal with his final pay because it was a higher amount it's so silly that these one off type payments are taxed so much higher when it's for something you need money for.

    Hope you have a turn around in your financial situation soon

  3. #3
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    I hate to tell you this but it also consider income for centrelink too. I got out $6600 to pay for my op last year. It cut all my centrelink payments last year and my dd this year.

    I hate it. You have to prove you can't pay for it any other way. In case I had to prove it was a life and death situation that I couldn't get fixed in the public system and then they charged 22 % tax and then they cut my family tax a and b and dd youth allowance.

    It is so not fair.

  4. #4
    Buttoneska's Avatar
    Buttoneska is offline Winner 2010- Most Community Minded Thread Award
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    yeh they certainly try to discourage you from drawing the funds don't they - and for those ppl who need it they have little choice but to do it anyway, even though you handing so much over to the tax man. If they going to tax it - it should be capped at 15%.

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    That's not fair....
    Hitting those that are struggling and need every little cent...
    Shameful

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    same thing happened to my sister, its a flippin joke.

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    thanks for that loving5. I hadn't even thought about it bumping up my taxable income. I'm better off paying stupid amounts of interest and balancing creditcards.
    Why is there not more options for people who are financially responsible, but have just found themselves in a bad situation.

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    Buttoneska's Avatar
    Buttoneska is offline Winner 2010- Most Community Minded Thread Award
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    Quote Originally Posted by Izy View Post
    thanks for that loving5. I hadn't even thought about it bumping up my taxable income. I'm better off paying stupid amounts of interest and balancing creditcards.
    Why is there not more options for people who are financially responsible, but have just found themselves in a bad situation.
    is there any family or friends you could borrow from? does centrelink provide loans?

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    u can check what centrelink loan your entitled to if u use online services. but it can be pretty pityful because its so close to the end of the financial year. i had a look at mine and they are able to lent me 140 bucks...o_0. i mean i guess thats good for emergencys but...

  10. #10
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    Because of the way my debt is I use every centrelink loan as soon as it's available (debt is on a low rate credit card) but the sheer volume of debt means it's still going to be about 3 years of living as a pauper and no unexpected bills to clear it all.

    I actually already owe my parents a lot of money from when I bought my house with my husband. They were happy to do it because they know how financially responsible I am... sadly other factors became involved so they've bailed me out and have ended up with another mortgage and their retirement has moved further out of sight

    It's frustrating because I know that I CAN do this paying the interest to the bank, but it means I'll end up paying about 5000-7000 extra in interest. I can't even look at doing a moratorium because if the bank knew of my financial situation they'd cancel my C/Card and I can't afford the repayments and food as separate items. (the sad fact is that it's expensive to be poor)

    I might just have to end up doing it though At least I still have another creditcard that doesn't get used, so if the good card gets cancelled I can use the other one.


 

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