As superannuation is there to support you once you stop working, you normally can't withdraw it until you reach a certain age and retire. However, some super funds, including QSuper, allow you to take it out early if you are facing severe financial hardship and meet the requirements set by the Australian Government.
How much you can access
You can apply to take out an amount of between $1,000 and $10,000 in any 12-month period if you are experiencing financial hardship. If your super balance is less than $1,000, or you have reached the age you can access your super, you can apply to take out the full amount.
Be aware that tax may be deducted from your withdrawal, so you could receive less than the amount you apply for.
Who can access their super due to financial hardship
The Australian Government has some requirements you'll need to meet before you can take out your super early in the event of financial hardship.
You must:
- Have received eligible income support payments from Centrelink for 26 weeks in a row and are still receiving these payments when you apply
- Be able to show you are unable to pay reasonable and immediate family living costs, such as utility bills, groceries, or rent.
There are different rules if you have reached the age you can access your super (currently between age 57 and 60 depending on your date of birth). In this case, you must:
- Have reached the age you can access your super plus 39 weeks
- Not be gainfully employed (i.e. not working 10 hours or more in a week)
- Have received income support payments from Centrelink for at least 39 weeks in total since you reached the age you can access your super.
Keep in mind that if you are aged 65 or over, you can access your super without restrictions, even if you are still working or looking for work.
If you are over the age you can access your super and under 64 years old, you can access your super as long as you are retired. If you're not ready to retire, you could start receiving regular payments from your super by opening a Transition to Retirement Income account.
Learn more about how to make a withdrawal from your super.
Financial hardship vs compassionate grounds
Taking out your super due to "financial hardship" is different from accessing your super on "compassionate grounds".
The main difference is that you don't need to be receiving income support payments from Centrelink to access your super early on compassionate grounds.
Additionally, you can only get your super money on compassionate grounds if you are unable to afford things like medical treatment, your mortgage, or a funeral.
Find out more about compassionate grounds.
How to apply for your super due to financial hardship
- Find your Centrelink Customer Reference Number (CRN) as you will need this when completing your application form. You can find your CRN on letters you've received from Centrelink or on your Centrelink concession card, if you have one.
- Complete our Severe Financial Hardship Application form, which can be found at the back of the Early Release of Superannuation Benefits due to Severe Financial Hardship factsheet (pdf).
- Send your completed form to qsuper@qsuper.qld.gov.au or to our postal address.
- Once we receive your application, we'll aim to process your request within seven working days.
What else to consider
- Your superannuation is designed to help you prepare financially for retirement, so if you take it out now, you will have less money to spend once you finish work.
- If you access your super before you reach the required age set by the Government, the taxable part of your super will be taxed at a maximum rate of 20% (plus applicable levies). If you wait until you reach age 60 to access your super, no tax is payable.
- An early release of super may reduce your Centrelink payments or impact the amount of child support you receive or pay. Contact Centrelink for more information.
For more information about accessing your super early, visit the Australian Taxation Office.