Financial hardship claims
In some circumstances, if you are experiencing financial hardship, you can access your superannuation (subject to meeting conditions).
What are the requirements?
You must be able to provide sufficient proof to the Trustee of HIP that you are experiencing financial difficulty and are unable to meet reasonable and immediate family living expenses, and also be currently in receipt of a Commonwealth Income Support Payment and have been for a continuous period of no less than 26 weeks (you will need to show us a letter from Centrelink confirming this).
If you meet these requirements, then an Application for Payment of Benefit Early Release Form must be completed and returned to HIP.
Commonwealth Income Support Payments include:
- Social security or service pensions
- Certain social security benefits
- Income support supplements
- Drought relief payments
- Exceptional circumstances relief payments
- Commonwealth Development Employment Projects (CDEP) scheme payments.
If you are not sure if you are receiving any of the above payments, you should phone Centrelink on 131 021.
What do you have to do?
You must complete the Application for Payment of Benefit Early Release Form and return it, along with the required supporting documentation and Q230 letter from Centrelink that is less than 3 weeks old to HIP.
Once this has been received, we then contact Centrelink and determine your eligibility. Following this, we will send you a letter advising you of the outcome, and if necessary, request any further documentation that may be required to complete your claim.
How much can be released to you?
The minimum amount that can be released is $1,000 before tax (except when the benefit is less than $1,000 and then no maximum restriction applies). The maximum amount that can be released is $10,000.
If tax is payable it will be deducted from any amount to be released.
Can you have more than one financial hardship claim in a year?
No. You can only make one financial hardship claim in a 12-month period ie. if you claim made on 5 April 2006 then you must wait until after 5 April 2007 before making another financial hardship claim.
However, one financial hardship claim and one compassionate grounds claim can be made in a 12-month period.
Are you aged 55 years and 39 weeks or more?
If you are, slightly different rules will apply. You must:
- Have received a Commonwealth Income Support Paymentfor a cumulative period of 39 weeks after reaching age 55; and
- Not gainfully employed on a full-time or part-time basis on the date of your application to the Trustee
- If you meet both the requirements regarding proof of financial difficulty and the rules above, your entire benefit can be released (ie the $10,000 maximum rule does not apply).
Please contact HIP if you would like any further information.
This website is provided by Private Hospitals Superannuation Pty Ltd ABN 59 006 792 749, AFSL 247063, RSE L0001533, Trustee of Health Industry Plan (SPIN HIP0100AU, RSE R1056617), and is general information only. It does not take into account your objectives, financial situation or specific needs so you should look at your own financial position and requirements before making a decision. Please note that investments can go up and down. Past performance is not a reliable indicator of future performance. You should assess your own financial situation and needs, read the relevant Product Disclosure Statement and consult an adviser if required before making a decision about products on this website.