You can access your super when you have reached your preservation age:

• When you turn 60 and are fully retired
• You may have limited access through a Transition to Retirement account
• When you turn 65, whether you are still working or not

If you’re struggling financially, you may be eligible to access your super on the grounds of severe financial hardship.

IF YOU ARE UNDER THE PRESERVATION AGE

You can apply if:

• you are receiving an eligible Commonwealth income support payment* from either Centrelink or the Department of Veterans’ Affairs (DVA) (depending on which body makes your income support payments) for a continuous period of 26 weeks; and
• you are unable to meet immediate family living expenses**.

* A Commonwealth Government income support payment is an income support supplement, service pension, social security benefit or social security pension.

** Immediate family living expenses include household expenses, rent and rental bond, child support and childcare, debts, car repair bills, health costs and veterinary bills and school fees.

How much of my super benefit can be released?

If you meet the above conditions, you can apply for one single payment in any 12-month period. The minimum payment is $1,000 (unless your balance is less than this amount) and the maximum payment is $10,000 (before tax).

Will you be taxed on your withdrawal?

Yes. A severe financial hardship withdrawal is paid and taxed as a normal super lump sum payment. If you are under 60 years old this is generally between 17% and 22%. If you are over 60, you will not be taxed. 

Important Considerations

Before making a claim it’s important to consider the following:

• If you’re a temporary resident in Australia, you won’t be eligible to apply for a payment on severe financial hardship grounds.
• If you want to keep your First Super account open, you must have enough money in it to cover administration and investment fees.
• If you have insurance cover, you need to leave enough money in your super account to pay insurance fees. If you have insufficient funds to cover this cost, your insurance will end.
• If no contributions are received into your super account for 16 months, by law First Super would be required to cancel your insurance cover automatically. See Insurance and inactive member accounts for more details.

A super withdrawal on compassionate grounds must be for unpaid expenses that you have no other means of paying, including needing money for:

• medical treatment and medical transport for you or your dependant
• palliative care for you or your dependant
• making a payment on a home loan or council rates so you don’t lose your home
• modifying your home or vehicle to accommodate your or your dependant’s severe disability
• expenses associated with the death, funeral or burial of your dependant.

The amount you can withdraw is limited to what you’d reasonably need to cover these expenses. It’s important to note that this type of withdrawal is assessed and administered by the Australian Taxation Office (ATO), not your super fund.

The Australian Government introduced the First Home Super Saver (FHSS) scheme to help Australians save for their first home. Even if you have a property in New Zealand, you can still apply for FHSS.

Your KiwiSaver and voluntary contributions can be used towards FHSS. The maximum you can access is AUD $15,000 per financial year, with up to a total of AUD $50,000 per person across several years. You could save up to AUD $100,000 as a couple.

The most you can use from your KiwiSaver component is up to AUD $15,000 per person. If you are a couple migrating from New Zealand, together you could use up to AUD $30,000 from each of your KiwiSaver components. 

If you want to access the full amount of AUD $50,000 you will need to make additional voluntary contributions to your super (up to AUD $15,000 per annum over several years).

To be eligible for release of the FHSS scheme you must:

• be aged 18 years or older;
• have never owned a property before in Australia;
• not be in the process of using FHSS to purchase other property; and
• have not requested a release of FHSS funds for a home purchase previously.

If you are living and working in Australia, you may be able to use your KiwiSaver savings towards FHSS.

If you are diagnosed with a terminal illness or permanently incapacitated, you may be able to claim some or all of your super before your preservation age. Contact your super fund to find out more about requesting access.

The ATO website has more details on Access due to a terminal medical condition.

If you have worked and earned super while visiting Australia on a temporary working visa, you can apply to have this super paid to you as a departing Australia superannuation payment (DASP) after you leave.

Australian and New Zealand citizens, and permanent residents of Australia aren’t eligible for the DASP.

What if I’m an Australian or New Zealand citizen, or a permanent resident of Australia?

Australian citizens and permanent residents heading overseas remain subject to the same rules as those living in Australia, even if you leave Australia permanently. You cannot access your super until you reach your preservation age and retire or satisfy another condition of release.

However, individuals permanently moving to New Zealand may be eligible to transfer their super to a KiwiSaver account.