When you can gain early access to your super

If you suffer a serious injury, illness or financial hardship and have no funds to fall back on, you may be able to withdraw some of your super to pay your bills.

Super’s governing rules allow for early access to your savings in very limited circumstances.

Eligibility will depend on whether you qualify for access to your super on compassion- ate grounds or due to severe financial hardship.

Both “conditions of release” have different sets of rules and processes.

Compassionate grounds include needing money to pay for medical treatment, making a payment on a home loan or council rates so you don’t lose your home and palliative care for you or a dependant.

Approval for early access on compassionate grounds is the responsibility of the Australian Tax Office.

To apply under compassionate grounds, log-in to your MyGov account: select the heading option super, then manage, then compassionate release of super. Alternatively, ask the ATO for a paper form.

For early access to super due to severe financial hardship, you will need to contact your super fund directly.

You may be able to withdraw some of your super if you’ve received government income support payments continuously for 26 weeks and you are not able to meet reasonable and immediate family living expenses.

You will also have to pay tax on the withdrawal: if you’re under preservation age, which for most people is 60, double-check what tax will be applicable because it’s 20% plus Medicare on the taxable component of your super.

Also consider thoroughly cleaning cooking equipment, pressure-cleaning furniture and covers and checking soft furnishings for signs of mildew before packing away. Switch fan to winter mode Switching your ceiling fans to winter mode is a great function that reverses the direction the blades turn.

This draws warm air up to the ceiling and returns it back down the walls to the floor, circulating warmth throughout your home. By using your ceiling fan in conjunction with your heating system you can warm your home and distribute heat evenly.

Most people have most of their super in the taxable component – that’s where your employer’s SG contributions, salary sacrifice contributions and earnings go.

Before embarking on any early access applications, also

Using your fan with your air conditioner, fireplace or heater will make your room feel warmer for longer.

Air conditioning

Keeping your air conditioner in tip-top share ensures the unit works efficiently and quietly, heating your home throughout the winter months.

Areas to be checked and cleaned include the filter, evaporator coil and condenser coil. Although cleaning the air conditioner is a job most homeowners can tackle, it is important to remember that it should also be serviced at least once a year by a qualified technician.

Fire safety

According to Fire and Rescue NSW: “Every winter, there are more than 1100 home fires, from which around 100 fire-related injuries occur.”

This highlights the importance of addressing home fire safety measures, such as smoke alarms, during the cooler months when many homes rely on heating equipment and systems.

Another fire hazard is your clothes dryer: cleaning the lint filter and vents is important, and is a job that should be undertaken each week.

TRACIE ELLIS

check whether your total and permanent disability (TPD) and income protection cover would offer financial relief.

Also be aware of the impact of withdrawals on your insurance, because some funds need a minimum amount to maintain your cover.

Some older style funds don’t allow early access withdrawals, in which case you can always roll over your super to a fund that does.