Super is normally reserved to financially support you when you reach retirement age. However, you may be able to access your super account balance early on the grounds of permanent incapacity if you suffer from an illness or injury and you are unable to work.
At Alliance Compensation & Litigation Lawyers, we offer this service to all our clients who have suffered an injury at work, outside of work or have an illness stopping them from earning an income.
What is permanent incapacity?
Permanent incapacity simply means you have a medical condition or an injury which has rendered you incapacitated for work permanently and you are unable to earn an income. This includes work for which you are suited by way of education, training, or experience and work in any other occupation.
If you meet these requirements, you will be able to access your entire Super. When your application is approved, you will be provided the option of withdrawing your entire super or a partial payment.
Can your application get rejected?
Yes, lodging an application for early release of your super funds does not necessarily warrant that your application will be approved. An assessment is usually conducted by your super fund to ensure you meet the requirements before you are provided access to your super balance.
Your super fund may request information from you in relation to your injuries or illness and you are also required to provide certification from two of your treating medical providers confirming you are unable to permanently return to work because of your ill-health or injury.
Therefore, it is crucial to submit the accurate information and supporting documentation with your application to ensure your super does not reject your claim.
Let one of our expert lawyers act on your behalf and assist you with your application. To prepare and ensure you have access to your super early, we will: –
- Seek instructions from you in relation to your injuries or illness.
- Prepare your application and lodge this to your super with the appropriate supporting documentation and evidence.
- Request your treating providers to complete permanent incapacity forms; and
- Communicate with the super fund to ensure your application is assessed and approved in a timely manner.
Other ways you can access your Super:
There are other ways you may access your super, such as making an application to the Australian Taxation Office to withdraw funds from your super on compassionate grounds. However, the amount you can receive on compassionate grounds is limited to $10,000.00. In addition, you can only have access to your super on compassionate grounds if you have financial difficulty and are unable to pay for any of the following expenses:-
- Medical treatment or transport for a life-threatening or mental illness.
- A mortgage or council rates payment to prevent you from losing your home.
- Home or vehicle costs to accommodate disability.
- Paying for palliative care.
- Paying for the death, funeral or burial expenses of a dependent.
In comparison, if you make an application for early release of your super due to permanent incapacity, there are no limitation or restrictions on the amount you wish to withdraw.
Will you be paying tax:
When you withdraw your super due to permanent incapacity, your payments are taxable if you are under the age of 60 years. Our solicitor looking after your claim will advise you on the tax implications when preparing your application.
What will happen to my superannuation account?
If you withdraw your entire super balance when your application for early release of super is approved, your account will close once the payment has been transferred to you and any insurance cover you may hold under the account will also cancel.
Contact us for an obligation free consultation and we will provide you the advice you need to assist you in your difficult times.
