The past few years – especially since the end of the COVID-19 pandemic – have been financially difficult for many Australians.

This is especially true when thinking about the RBA’s efforts to tame inflation.

Can I access super early due to financial hardship?

In short, times are tough.

It is important to know that if you are experiencing severe financial hardship, you may be able to access some of your super early to help make ends meet.

What is considered severe financial hardship?

The Government has determined what severe financial hardship looks like by setting up eligibility rules which differ depending on your age.

If you are less than age 60, you can apply if you meet each of the following three conditions:

you haven’t received a financial hardship payment from any super fund in the last 12 months, and
you are unable to meet ‘reasonable and immediate family living expenses’ such as food or rent, and
you have been (and still are) receiving eligible Commonwealth income support payments for a continuous period of at least 26 weeks.

If you meet these requirements, you can apply for a maximum withdrawal of $10,000 (and the minimum amount you can withdraw is $1,000). Further, your payment will be taxed at 22%.

If you are over age 60, you can apply if you meet each of the following two conditions:

you are unemployed or are working less than 10 hours a week when you apply, and
you have received eligible Commonwealth income support payments for a continuous period of at least 39 weeks since reaching age 60.

If you meet these requirements, there is no maximum withdrawal limit and you can request more than one withdrawal per year.

Impact of early release of super due financial hardship

Getting your super early may affect other payments you get or tax you pay. You may also need to pay a fee to your super fund (although that is not the case with Vanguard Super).

If you’re below preservation age you may need to pay tax on any money you get from your super.

Early release of super for you or your partner may reduce your Centrelink payments. This includes:

Family Tax Benefit
Child Care Subsidy
Income support
Parental Leave Pay.

An early release of super may increase your taxable income. This can impact the amount of Child Support you receive or pay.

Application process

The ATO does not process severe financial hardship requests – you need to make a request directly to your super fund.

If you are a Vanguard Super member, you should speak with the Vanguard Super team on 1300 655 101 8am–6pm (AET), Monday to Friday.

Alternatives for managing financial hardship

The Government’s Financial Information Service offers tools, resources and information that can help you make more informed financial decisions.

If you’re having problems with finances or struggling to repay debts, you can get help. The National Debt Helpline provides a free, confidential and independent financial counselling service.

You can also find a financial counsellor on the National Debt Helpline website.

Can you get an early release of super during financial hardship?