Please talk to us first
Our team is very understanding – call us now and we’ll help you by:
- Confirming whether you’re eligible to apply,
- Checking your Centrelink status for you,
- Discussing tax withheld on your payment, and
- the impacts to your insurance cover.
Check if you’re eligible for a financial hardship payment
We can only grant you an early release of your super on grounds of financial hardship in the following two circumstances:
You can apply for a single lump-sum payment from the fund in any 12-month period, between $1,000 and $10,000. If you have less than $1,000 in your super account, you can withdraw it all.
To qualify, you’ll need to:
- Be currently receiving an eligible Commonwealth income support payment and have been receiving it for the last 26 consecutive week
- Be unable to meet immediate family living expenses
- Have not received any financial hardship payments from the fund in the last 12 months
There are no limits (other than your account balance) to the amount you can apply to withdraw.
To qualify, you’ll need to:
- Have reached your preservation age
- Have been receiving an eligible Commonwealth income support payment for a total of at least 39 weeks after reaching preservation age
- Have not been employed part-time or full-time in that period for 10 or more hours each week
Eligible social security pensions, which include:
- Age Pension
- Carer Payment
- Disability Support Pension
Eligible social security benefits, which include:
- JobSeeker Payment
- Parenting Payment
- Special Benefit
- Farm Household Allowance
- Partner Allowance
- Widow Allowance
Eligible Department of Veterans Affairs payments, which include:
- Income Support Supplement
- Service Pension
Consider the tax implications
The Government requires us to withhold tax before we make your payment. The maximum amount we withhold (if we have your tax file number) is 22% but will depend on your circumstances.
For example, if you are under 58 years old and apply for $10,000 you are likely to receive $7,800 after tax has been taken out.
If you are 60 years old or more, we do not have to withhold any tax on your payment.
The amount we must withhold will depend on your circumstances, such as your age, tax components of your super, the amount of your payment and past payments, whether you are an Australian resident and whether you have provided us with your tax file number.
The table below shows the amount of tax we typically must withhold on a payment of super under severe financial hardship or compassionate grounds.
| Your age at time of payment | Amount of tax withheld on taxable component |
|---|---|
| 60 and above |
|
| 58 or 59 |
|
| Below 58 |
|
Generally for Claim Type 2 tax will not be deducted unless your withdrawal amount exceeds your low rate cap.
There is also no tax withheld on any 'tax free' component of your super. Tax free components generally occur where you have made personal after tax contributions to super.
Consider the impact on your insurance cover
If you withdraw all of your money from your super account, your account will close and your insurance cover will also end. You may want to consider keeping some money in your super account if you want to keep your insurance cover.
If your cover ends, you can still submit a claim for any insured events that happened before the date that your insurance cover was cancelled. However, you won't be able to make a claim for insured events that occur afterwards.
Your next step – print and complete the form
The next step will be to complete the form (call us if you need help):
- FirstChoice members can download the Financial Hardship Application form. You can return your completed form by post to the address on the form or you can also log in to FirstNet and submit via e-Post.
- FirstWrap members can either contact your financial adviser to progress your claim or you can call us and we’ll email you the form.
You’ll need to print the form so it can be signed and witnessed. If you don't have a printer, let us know and we’ll post you the form
Other ways you can get help
If you’re not eligible for a financial hardship payment, you might be able to apply on compassionate grounds.
Or you may find the following independent resources helpful:
- Government crisis payment
Provides a one-off payment if you’re in severe financial hardship because of extreme circumstances. - 'Ask Izzy' – Infoxchange Service Seeker
Online directory of health, welfare and community services. - National Debt Helpline
Not-for-profit financial counselling service that helps you tackle your debt problems. - ASIC Money Smart
Government organisation that helps you take control of your money with free tools, tips and guidance. - Lifeline – call 13 11 14
If you’re experiencing a personal crisis call or visit lifeline.org.au - Domestic Violence – call 1800 737 732
If you’re affected by domestic or family violence call or visit 1800RESPECT.org.au - MensLine Australia – call 1300 789 978
For counselling, advice and support call or visit mensline.org.au
These independent resources are intended as a guide and are not an endorsement that the service provided is appropriate for your personal circumstances. For more information on a service provider’s offerings and their appropriateness, you should contact the service provider directly using the contact details provided.
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Information on this webpage is provided by Avanteos Investments Limited ABN 20 096 259 979, AFSL 245531 and Colonial First State Investments Limited ABN 98 002 348 352, AFSL 232468. It may include general advice but does not consider your individual objectives, financial situation, needs or tax circumstances. You can find the target market determinations (TMD) for our financial products at www.cfs.com.au/tmd, which include a description of who a financial product might suit. You should read the Financial Services Guide (FSG) available online for information about our services.
Tax considerations are general and based on present tax laws and may be subject to change. You should seek independent, professional tax advice before making any decision based on this information.
AIL and CFSIL are not registered tax (financial) advisers under the Tax Agent Services Act 2009 and you should seek tax advice from a registered tax agent or a registered tax (financial) adviser if you intend to rely on this information to satisfy the liabilities or obligations or claim entitlements that arise under a tax law.