How to access to super early is only available under very limited circumstances. Often, most people are unable to access their super early unless under special conditions. Due to life’s uncertainties, most desperate persons usually fall victim to promoters who claim to be able to offer you access to your super early. They do so by convincing you that they can transfer it to a self-managed super fund. Beware that such schemes are deceitful and attract heavy penalties. If you’ve been wondering how to access super early, here are some revelations:
Access Due to Severe Financial Strain
Access to your super may be provided if you’ve been receiving income support from the government for a period of up to 26 weeks. Moreover, you will have to prove that you’re unable to meet daily family living expenses. Upon receiving your super as a result of financial hardship, it will be taxed as a super lump sum.
Access on Compassionate Grounds
Apart from severe financial hardship, you can also be allowed to withdraw your super based on compassionate grounds. Such grounds include:
• Making loan repayments to prevent you from losing your house.
• Paying medical bills for yourself or your dependant
• Paying for expenses associated with a burial, funeral or the death of a dependent.
• You are modifying your car or home to accommodate someone with special needs such as disability.
Access due to Temporary Incapacity
Severe mental and physical conditions may, at times, prevent you from engaging in productive work. Similarly, such circumstances may also force you to work fewer hours as opposed to your earlier schedule. Temporary incapacity provides fertile grounds that facilitate the release of benefits from a super fund.
The payment will be disbursed at intervals over the entire period you’re unable to work. The funds will be taxed as a regular super income.
Access Due to Terminal Medical Condition
Terminal medical conditions are commonplace in today’s society. You will be able to access your super under a terminal medical condition if:
• At least one of the registered doctors is a specialist who practices in a field related to your injury or illness.
• Two doctors have separately or jointly certified that you have an injury or suffer from an illness that may result in death after a certain period.
Access as a Result of Permanent Incapacity
This kind of super withdrawal is also referred to as ‘super disability benefit’. Under such circumstances, you must prove that the incapacity will be a hindrance to your working ever again.
The Bottom Line
Access to super early is never an easy task. However, you should consult before you apply for super early. Moreover, you stand to be prioritised under the conditions mentioned above.
