Summary
Financial hardship eligibility & payments
Life doesn’t always go to plan. Illness, unemployment or reduced income can make it hard to cover everyday living expenses.
If you’re experiencing financial difficulty, financial hardship may allow limited early access to your super in specific circumstances. Eligibility depends on your age, work situation and whether you meet the required conditions.
Who may be eligible
There are two eligibility categories, based on your age.
If you’re under age 60
You may be eligible if all the following apply:
- you’re unable to meet reasonable and immediate living expenses,
- you’ve been receiving an eligible government income support payment for at least 26 weeks in a row, with no gaps,
- you’re receiving these payments when you apply, and
- you haven’t received a financial hardship payment from any super fund in the last 12 months.
How much you can withdraw
- Minimum: $1,000 (or your full balance if it’s less)
- Maximum: $10,000 (before tax)
- One payment allowed in any 12‑month period
If you’re aged 60 or over
You may be eligible if all of the following apply:
- you’re unable to meet reasonable and immediate living expense,
- you’ve been receiving an eligible government income support payment for at least 39 weeks in total since turning 60,
- you aren’t working for more than 10 hours a week.
How much you can withdraw
- No minimum or maximum limit
- No limit on how many times you can apply, as long as you continue to meet the eligibility rules
Important things to know
- Temporary residents in Australia aren’t eligible to access their super due to financial hardship.
- Meeting the eligibility conditions doesn’t guarantee approval – each application is assessed individually.
- Impacts on other payments: Withdrawing your super now could also impact the money you get from places like Centrelink (such as for your child support) or Work Cover. This may also count towards your taxable income and may reduce your income-tested benefits.
Tax on financial hardship payment
Financial hardship payments are paid as a super lump sum. Tax depends on your age:
- Under age 60: generally taxed between 17% and 22% (including Medicare Levy)
- Aged 60 or over: generally tax free
How a payment may affect your super and insurance
- Any financial hardship payment will reduce your super account balance
- This may also affect any insurance cover you have through your super
- To keep your insurance, you’ll need enough money in your account to pay for premiums
- In some circumstances, insurance cover can stop (for example, if no contributions or rollovers are received for 16 consecutive months)
You can learn more in the Insurance in your super guide.
Other options you may be able to consider
Financial hardship isn’t the only way to manage your income or access support. Depending on your age and circumstances, you may also consider:
-
Accessing your super for retirement
You may be able to access your super under normal retirement rules if you:
- are 60–64 and stop working for an employer after turning 60, or
- are 65 or older, even if you’re still working
Once eligible, you can choose how to use your super – for example, as a lump sum, a regular income, or a combination of both.
AustralianSuper’s account‑based pension is called Choice Income. It gives you flexible access to your super through regular income payments as well as lump‑sum withdrawals, while keeping your balance invested throughout retirement.
Transition to retirement
If you’re 60 or older and still working, you may be able to transition to retirement. This lets you draw some income from your super while continuing to work, which may help supplement your take‑home pay. Transition to Retirement can be complex and isn’t right for everyone. It’s a good idea to get financial advice before deciding.
Government Age Pension
The Government Age Pension is a fortnightly payment from the Australian Government that helps eligible older Australians cover basic living expenses. It’s paid by Services Australia and may be received on its own or alongside your super.
You may be eligible if you:
- are 67 or older
- meet residence rules
- pass an income test and an assets test
How to apply for Financial hardship
You can apply for financial hardship payment digitally or via the hardcopy form below:
Apply for a payment (financial hardship) - pdf, 119 KB
Tags:
-
Disclaimers
- Transition to Retirement (TTR) can be complex and isn’t suited to everyone. It’s a good idea to get financial advice before deciding if a TTR Income account is right for you.