Accessing your super due to financial hardship

If you have experienced financial hardship for some time, you may be able to access some or all of your super to meet reasonable and immediate living expenses.

Even if you meet the strict conditions, it’s important to consider how an early withdrawal will impact:

• your retirement income
• any tax you may need to pay
• insurances paid through your super
• any government benefits you’re receiving

The maximum amount released depends on which eligibility criteria you meet (see below).

You can apply once to withdraw up to $10,000 (less tax of up to 22%) in any 12-month period if:

• you haven't received a financial hardship payment from any superannuation fund within the last 12 months; and
• you’ve received eligible Commonwealth income support payments for a continuous period of at least 26 weeks; and
• you’re receiving these payments when you make your application for payment under financial hardship; and
• you’re unable to meet reasonable and immediate family living expenses.

The minimum amount that can be withdrawn is $1,000 (except if the amount of your preserved benefits and restricted non-preserved benefits is less than that amount).

If you want to keep your super account open, you need to leave a minimum of $1,000 in your account after making any withdrawal.

Any payment made will reduce your super account balance and it may affect any insurance cover you have. To maintain your insurance cover you’ll need to have enough money in your super account to pay for it. In some circumstances insurance cover can stop, such as if no contributions or rollovers are received in your super account for 16 consecutive months. To learn more about other factors that could impact your insurance cover, read the Insurance in your super guide.

If you’ve reached the age you can legally access your super (preservation age) plus 39 weeks you can apply to withdraw as much of your super as you wish if:

• you’ve been receiving eligible Commonwealth income support payments for a cumulative period of at least 39 weeks since reaching your preservation age; and
• you’re unemployed or employed for less than ten hours a week when you make your application for payment under financial hardship.

Temporary residents in Australia are ineligible for financial hardship.

Financial hardship payments are taxed as a super lump sum. If you’re under age 60, this is generally taxed between 17% and 22% (including Medicare Levy), and if you are aged 60 or older will generally be tax free.

If you don’t meet the criteria to access your super on grounds of severe financial hardship:

• you may still be able to apply on compassionate grounds. Applications on compassionate grounds are made via the ATO. Read our guide to learn more about applying on compassionate grounds and accessing your super early.
• the National Debt Helpline may be able to help with free financial counselling. Call 1800 007 007 (Monday to Friday, 9.30am–4.30pm), or visit ndh.org.au
• read about support for managing urgent debt or living costs at moneysmart.gov.au

Your preservation age is generally the earliest age you can access your super, and it's calculated based on your date of birth.

• It's called preservation age because your super is a preserved benefit – you can’t normally access it until you reach a certain age.
• It is not the same as retirement age.
• Use the table to the below to find your preservation age.

Now you know your preservation age, you can check your eligibility for severe financial hardship. You must meet both of the conditions shown under one of the types below.

If you meet these conditions, you then:

Type 1
The minimum amount you can apply to withdraw is $1,000 (or your account balance if the amount of your preserved benefits and restricted non-preserved benefits are less). The maximum amount you can apply to withdraw in any 12-month period is $10,000 in a single lump sum. You can only apply once in any 12 month period.

Type 2
You can apply to withdraw any amount.

1. Identification

You’ll need your membership information – this is to help us make sure we’re releasing your benefit to you. Depending on the type of payment you are applying for (type 1 or 2) you’ll need to provide additional forms of identification.

There are two ways you can provide your proof of identity – you can choose to have your identity electronically verified, or you can choose to attach certified paper copies of your proof of identity documents to this application.

For more information on providing ID go to australiansuper.com/IDHelp

2. Centrelink Customer Reference Number

By providing your Centrelink reference number (CRN) you authorise AustralianSuper and its administrator to use Centrelink Confirmation eServices to perform a Centrelink superannuation confirmation enquiry of your details. This is to confirm you have been receiving benefits for either 26 continuous weeks (type 1) or 39 weeks cumulative post preservation age (type 2).

3. Claim amount and bank account

Tell us how much you would like to withdraw and where to deposit your funds. Please note the account you choose to deposit your funds must be in your name (can also include a joint account).

If you are under preservation age, we may ask you to provide recent evidence to support your claim of financial hardship. Your evidence should support your current financial circumstances. Any documents you provide should be dated within 21 days of making your application.

When we have all the information required and your application has been assessed, if approved we will normally pay financial hardship claims within 5 business days.