In very rare conditions, you may be able to access your super early. These are largely for special expenditures. The following have been ways people have accessed their super funds.
Access on humanitarian grounds
On humanitarian grounds, you may be able to withdraw part of your superannuation fund by superannuation advice australia, for medical treatment and medical transportation for you or your dependant; palliative care for you or your dependant; making a home loan or council rates payment so you don’t lose your home; accommodating a disability for you or your dependant; expenses related to your dependant’s death, funeral, or burial
Due to significant financial difficulties, access
The ATO does not handle severe financial distress. Due to significant financial difficulties, you must contact your super provider to seek access to your super, and also your superannuation advisor for advice. If you meet the following criteria, you may be eligible to withdraw some of your super:
- You have been receiving continuous qualified government income assistance payments for the past 26 weeks and are unable to meet reasonable and immediate family living expenses.
- There are no cashing limits if you have achieved your preservation age plus 39 weeks and were not gainfully working when you applied.
- There are no exceptional tax rates for a super withdrawal due to extreme financial difficulty. It is paid and taxed in the same way as a regular lump payment. If you are under the age of 60, you will be taxed between 17% and 22%. You will not be taxed if you are over the age of 60.
Refer to the Services of Omura Wealth Advisers for further information on how to apply for early access to your superannuation funds because of financial difficulty.
Illegal early release of super fund
Be wary of marketers that claim to give early access to your super by transferring it to a self-managed super fund. These scams are unlawful, and if you participate, you will face severe consequences. More details may be found in Illegal early release of super.
Access due to a terminal medical condition
If you have a terminal medical condition, you may be eligible to access your super. If all of the following factors are satisfied:
- At least one of the registered medical practitioners is a specialist practising in an area related to your illness or injury.
- Two registered medical practitioners have jointly or separately certified that you have an illness or injury that is likely to result in death within 24 months of signing the certificate.
- The 24-month certification term is still active.
To request access to your super owing to a terminal medical condition, contact your super fund and superannuation advisor. Your super must be paid in a single payment by your fund. If you withdraw the amount within 24 months after certification, it is tax-free.
If your fund does not permit access because of a terminal medical condition, you may be able to transfer your super to another fund.
Access due to a temporary disability
If you are temporarily unable to work or need to work fewer hours due to a physical or mental medical condition, you may be eligible to access your super. This release condition is typically used to gain access to insurance benefits tied to your super account.
The super will be paid to you in monthly instalments throughout the period you are unable to work. A temporary disability super withdrawal is taxed as a super income stream.
Contact your super provider to request access to your super as a result of temporary incapacity and to enquire about the insurance implications of your account. If you do not have access to insurance coverage through your super account, investigate if you could be eligible owing to extreme financial hardship.
Access due to a permanent disability
If you are permanently disabled, you may be able to access your SS. This sort of super withdrawal is also known as a “disability super benefit.”
Your fund must be convinced that you have a permanent physical or mental medical condition that will prevent you from ever working in a career for which you are qualified through education, training, or experience.
If you meet the above conditions but are doing other work, such as light tasks in a different position or casual work in a different sector, you may still be entitled to withdraw your super. You can get your super in the form of a lump sum or as recurring instalments.
Different tax components apply to a super withdrawal owing to permanent disability. To qualify for tax breaks, your permanent disability must be confirmed by at least two medical practitioners. To obtain access to your Super due to permanent disability, contact your provider.
To determine how your super contribution will be taxed, you must first determine how much of the money in your super account is:
- tax-free portion
- taxable component on which the super provider has paid tax
If you are under the preservation age and receive a disability benefit as an income stream, you will be eligible for tax offsets that decrease the tax rate on the taxable component of your taxable component by 15%.
Your disability payout will be taxed at the rates specified in how tax applies to your super if you have reached your preservation age or if you get a lump amount.
Identity theft or misappropriation
If you suspect that someone has accessed your super without your permission, you should check your ATO Online accounts to ensure that your contact information is still valid.
superannuation advisors do advices that you should check your superannuation account to ensure that your account information is valid and that no unauthorised activities have occurred.
If you receive a text message or email claiming that your information has been changed or that you have applied for early super release when you have not, do not click on any links and examine if your identity has been stolen.
If you suspect that your identity has been stolen or exploited, inform both your super fund and the police as soon as you notice any unauthorised transactions or alterations to your account.
Categories: Superannuation Fund