Ask An Adviser - Can I Access My Super To Help Pay For Flood Damage?

Top answer provided by:

Imran Amjad

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Dear Jamie

First of all, I must say this has been a very tough time.  I have seen many families have suffered with the recent floods and left with significant losses. 

As I am not familiar with your overall circumstances such as age, income and living arrangements, the information here is general in nature.  You must seek personal financial advice before making any decisions.  There have also been many scams warned by the ATO and other government bodies when it comes to people claiming to help you with your superannuation withdrawals. 

Access to your super is as a last resort option.  There are strict guidelines when and how to access your super.  Therefore, you may wish to explore other payment assistance options before considering access to super.  Here a couple of links that may be helpful in your limited known circumstances. 

1. Queensland Government is also helping where one was uninsured or have a claim declined by the insurer. QLD Government has established a ‘Essential Household Contents Grant’. This assistance is means tested against your income. Click on the link below and you will have a step-by-step process on how to avail this service.  This one-off grant can be up to $1,765 for singles and up to $5,300 for couples or families. 
   Essential household contents grant | Community support | Queensland Government (www.qld.gov.au)

2. Services Australia has a dedicated page where you can obtain information if you are eligible for disaster payment and how.
   South East Queensland Floods, February 2022 - Australian Government Disaster Recovery Payment - Services Australia

3. You may be compelled to think of other strategies where you can divert some of your repayments for other liabilities for a short period. Although, any financial decision on these should be taken carefully and recommended to be with personal financial advice.  Each option would have its own pros and cons. 
   
   
4. Mortgage Relief – you may be entitled to a mortgage holiday for up to 3 months.
   
   
5. Hardship Provision – your utility provider may be offering a payment plan to pay your bills in instalments.
   
   
6. Charitable Assistance – you may consider contacting one of the charitable organisations such as Red Cross, Salvos or St Vincent de Paul for assistance with relief items.

As I mentioned above, not knowing your personal circumstances makes it difficult to provide information on your eligibility to access your superannuation fund.  I would highlight the circumstances where you may be eligible for a withdrawal from your super, although, it is highly recommended to seek personal financial advice before proceeding. 

1. You could access a lump sum from your super if you had reached your preservation age and met a condition of release.
2. You have any unrestricted non preserved component in your super fund. There may be tax implications.
3. You have a superannuation income stream where you can make additional withdrawals.
4. You qualify for financial hardship to claim a superannuation withdrawal. Please click on the ATO link here for detailed information.

Early access to your super | Australian Taxation Office (ato.gov.au)

Information provided in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.

 

 

While the Adviser Ratings Website facilitates the question and answer functionality, all such communications are between users and authorised financial advisers, of which Adviser Ratings has no affiliation. Adviser Ratings is not the advice provider and does not provide financial product advice and only provides information that is general in nature.

Article by:

Imran Amjad

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