Just wondering if anyone can assist me, I am on a Disability Pension and am aged 55 and my husband is on a Carers Pension and is aged 52.
My husband currently has approx $15000 in super through Sunsuper. They do not allow early release of funds and we are wanting some of it for financial reasons. We are wanting to keep some of it for funeral expenses.
Can any one advise of other super funds that will grant us early release?.
Hi,
Former trustee of a super fund. Each fund will be bound by the SIS act, so the early release criteria will be the same no matter which fund - maximum allowable withdrawal limit is 10k every 12 months (as far as I'm aware however, there is still a loophole in this legislation that doesn't prevent you from rolling the remaining amount over to another fund, and applying through them for a separate amount, provided you can still obtain a Q230 letter from Centrelink). What was the advice provided by Sunsuper, as I think you've been told the wrong info there?
The Q230 letter is key here - you need to contact Centrelink and confirm with them that the benefit your husband is receiving is a valid benefit to generate the Q230 document, which for compliance purposes is a statement from Centrelink confirming you're receiving an eligible benefit for over 6 months and thus eligible for a release on financial hardship grounds.
Get your documents in order before applying - they will want every bit of documentation imaginable - statements, bills, accounts, rental certificates - all original copies certified, all within 3 months of the date you send them in. I recommend putting it in an express post document and keeping the tracking numbers.
Don't forget the tax applied on this also (more than likely the marginal tax rate). If you have a super account in your name - may be better for you to apply to withdraw yours, with a slightly more favorable tax treatment applied.
According to the Sunsuper website they no longer release super benefits under financial hardship.
Their release form includes the following statement:
"It’s important to note that Sunsuper no longer accept claims under severe financial hardship.
The Q230 and Q251 letters issued by the ATO for financial hardship claims WILL NOT qualify you for a
compassionate grounds claim."
https://www.sunsuper.com.au/members/retirement/accessing-you…
They still allow for release on compassionate grounds but this appears more restrictive.
According to a report on news.com.au (from back in 2016) REST Super, Sunsuper and Super SA all stopped financial hardship withdrawals.
Other funds still allow such withdrawals.
Hi there
Could you turn on private messages?
I was hoping to pick your brain without hijacking the OP's question. :)
Cheers
This is the reply I received after contacting Sunsuper; However, to be able to access your super, you must meet a condition of release. Prior to retirement age, there are three main conditions of release (subject to government approval):
First Home Super Saver Scheme (FHSSS)
Compassionate grounds
Financial hardship
First Home Super Saver Scheme
The FHSSS can only be used if a member is currently making their own contributions to super (such as salary sacrifice or after-tax voluntary contributions). A member cannot withdraw their employer contributions unless another condition has been met.
Please see the ATO's website here for eligibility criteria and for limits on how much you can withdraw.
Compassionate grounds
To claim benefits on compassionate grounds, you must satisfy one or more of the following requirements:
Medical treatment or transport for you or your dependant/s
To pay for medical costs and transport required to treat life-threatening illness or injury, acute or chronic pain, or an acute or chronic mental disturbance.
Modifications to your home and/or motor vehicle
To fund specific modifications that are necessary to accommodate special needs if you or your dependant has a severe disability.
Funeral assistance
To assist with funeral and other expenses related to the death of a dependant.
Palliative care
To provide care for you or your dependant who is dying from a terminal illness, including home care.
Mortgage assistance
To prevent your mortgage (lender) from selling your principal place of residence.
If you wish to make an application for the early release of your superannuation entitlements prior to retirement based on compassionate grounds, please note:
Funds which are released may incur a government tax of 20% plus 2% Medicare levy if you are aged less than your retirement age
If you haven’t given us your tax file number, then you will be taxed at the highest marginal tax rate plus Medicare levy
Our exit fee is $47 gross
To maintain any insurance cover, we require a minimum of $1,500 in your account at all times
For further information regarding the compassionate grounds criteria please contact the Department of Human Services (DHS) directly on:
Phone: 1300 131 060
Overseas Phone: +61 3 6222 2189
Website: humanservices.gov.au
If you qualify for compassionate grounds, please complete and return our Early release of super on compassionate grounds form, along with your letter of approval from the DHS (or a certified copy), certified identification and a bank statement issued in the past 12 months.
Financial hardship
Sunsuper no longer offers financial hardship as a condition of release. However, if you qualify, you may be able to transfer your balance to another fund able to access your super under financial hardship grounds.
Under legislation, to qualify:
You must be in receipt of Centrelink benefits for 26 consecutive weeks, and
Be unable to meet reasonable and immediate living expenses
We recommend calling Centrelink before proceeding to ensure they are able to provide you with an approval letter.
The withdrawal amount is also capped at $10,000 before tax and withdrawals, before preservation age, are taxed at 22%
One short answer, the super fund only releases your super early if you provide them the required forms + Centrelink approval letter.
This Centrelink approval letter is quite important. Have you got it?
My wife recently took out her super that she earned while working in australia for 2 years. Government took 65% of $900.
Working holiday visa? Thats about right tax rate.
Not working holiday visa .. they may have charged her incorrectly
yeah working holiday visa. no wonder the government encourages and enforces employers pay super for all foreign employees.
All super funds have early release options, if you can demonstrate financial hardship or hit other criterias. However, the application and approval process is long and difficult, you will also be taxed severely. So unless it is a last resort, it should not be considered an option. Think of finance outside of super, family/friends, personal loan etc
Wow - that's insane re: Sunsuper.
Guess your best bet is to find out the exit fee, and find another fund that has low/no exitor withdrawal fees.
Ona, send me a private message. I have 20+ years experience in Super an Insurance and have experienced a similar circumstance personally. Let me guide you through the simplest path. The system you are reading about above won't help you.
Apologies - have changed my settings - you can now send me a message if you choose.
Thank you for joining to ask this question.
I can't answer your question and I have a question.
Are emergency fund releases from superannuation governed by legislation or can funds make up their own conditions?