Conditions for withdrawal

Your client may be able to withdraw some of their superannuation benefits early if they meet certain conditions.

See below for more information on eligibility, what documentation is required and where to send documents.

To discuss these requirements with a member of our team please speak to us via live chat on Adviser Online.

Experiencing financial hardship

We understand life can take unexpected turns - we’re here to help. Your client’s superannuation is designed to help build their long-term retirement savings. However, there are times when your client may be able to access their superannuation early, for example when they experience severe financial hardship.
 

Test A: Client has not reached their preservation age plus 39 weeks

If your client hasn’t reached their preservation age plus 39 weeks (or has attained their preservation age plus 39 weeks but doesn’t satisfy the requirements in Test B):

  • they must be currently in receipt of Commonwealth income support payments and have received such payments for a continuous period of 26 weeks (a Centrelink Q230 letter stating they have been in receipt of payments for 26 weeks is required as proof. Please note the letter must not be dated any earlier than 21 days before the date of the application), and
  • the Trustee of the fund must be satisfied that they are unable to meet reasonable and immediate family living expenses. The minimum amount that can be withdrawn is $1,000 and the maximum amount is $10,000 (gross).

Your client can only make one withdrawal under severe financial hardship in any 12-month period.
 

Test B: Client has reached their preservation age plus 39 weeks

If your client has reached their preservation age plus 39 weeks:

  • they must have received Commonwealth income support payments for a cumulative period of 39 weeks since attaining their preservation age (a Centrelink Q251 letter is required as proof),
  • they can’t be gainfully employed for 10 or more hours per week.

You can check if your client is under or over the preservation age on the ATO website.

Apply on financial hardship grounds

If your client meets either of the above criteria, and would like to proceed, please complete a Voyage Super and Pension Withdrawal/Rollover form or Grow Wrap Super and Pension Withdrawal/Rollover form online.

If your client doesn’t meet the above requirements, the Australian Taxation Office (ATO) may be able to assess their case on compassionate grounds. Contact the ATO directly to discuss this option on 13 10 20.

Compassionate grounds

Your client may apply to the Australian Taxation Office (ATO), via the ATO application portal, for release on compassionate grounds.

There are limited circumstances where benefits may be released on compassionate grounds.

Your client may be able to have superannuation released on compassionate grounds to meet unpaid expenses for:

  • medical treatment for your client or their dependant
  • medical transport for your client or their dependant
  • modifying your client’s home or vehicle to accommodate special needs arising from their or their dependant’s severe disability
  • palliative care for your client or their dependant’s terminal illness
  • death, funeral or burial expenses for your client’s dependant, or
  • preventing foreclosure or forced sale of your client’s home.

Apply on compassionate grounds

If your client is approved for early release of superannuation under compassionate grounds, we’ll require the below documentation:

Permanent incapacity

Your client can apply for early release of superannuation under permanent incapacity where:

  • your client is unlikely, because of ill-health (whether physical or mental), to ever engage in gainful employment for which the person is reasonably qualified by education, training or experience.

Apply under permanent incapacity

To apply for early release of superannuation under permanent incapacity we’ll require:

Set up an invalidity pension

If you’d like to instead set up an invalidity pension for your client, we’ll require:

  • two Voyage Medical practitioner statements or Grow Wrap Medical practicioner statements completed by two separate medical practitioners (who must be registered with the Medical Board of Australia)
  • one Member declaration (Section 1 of the Medical Practitioner’s form)
  • a completed Pension Application form or Switch Form
  • a completed original Tax file number declaration
  • AML ID documentation if required

As we require an original Tax file number declaration for an invalidity pension application, that must be posted to us. You can post this to us at:

GPO Box 3154
SYDNEY NSW 2001

We’ll be in touch to process your request.

Tips for medical practitioner statements

Before you send us this information, please check your Medical practitioner statements are fully completed. They must also:

  • be dated and signed within the last 6 months (Please note it is important for medical practitioners to stamp their forms)
  • indicate how long your client has been a patient of the respective registered medical practitioner(s)
  • indicate that your client has been in consultation with the registered medical practitioner(s) for a minimum of 6 months
  • clearly specify the full date (i.e. DD/MM/YYYY) your client stopped being capable of engaging in gainful employment for which they’re reasonably qualified by education, training or experience (if the medical practitioners do not confirm the same full date for the last date of gainful employment, the Trustee may require additional supporting evidence to confirm this date)
  • describe a full diagnosis of your client’s condition.

Diagnosed with a terminal illness

If your client is suffering from an illness or has incurred an injury that is likely to result in their death within a specified period of no more than 24 months, they can apply for early release under Terminal Medical Condition. 

Apply under a Terminal Medical Condition

To apply for early release of superannuation under a Terminal Medical Condition, we’ll require:

Tips for medical practitioner statements

Before you send us this information, please check your Medical practitioner statements are fully completed. They must also:

  • be dated and signed within the last six months (Please note it is important for medical practitioner to stamp their forms)
  • indicate how long your client has been a patient of the respective registered medical practitioner(s)
  • be a full diagnosis of your client’s condition
  • state that in the medical practitioner’s opinion your client is suffering from an illness, or has incurred an injury, that is likely to result in their death within (a specified period of no more than 24 months).

Temporary resident departing Australia

If your client has worked and earned superannuation benefits while visiting Australia on a temporary visa, you can apply to have their superannuation benefit paid to your client as a Departing Australia Superannuation Payment (DASP) after they leave the country.

To be eligible for a DASP:

  • your client must have been a temporary resident; and
  • they must not be an Australian citizen, New Zealand citizen or permanent resident of Australia; and
  • they must have left Australia; and
  • their visa must have ceased to be in effect (i.e. expired or been cancelled).

Your client must have left Australia permanently before applying for the payment. They can’t hold a temporary or permanent visa, be an Australian or New Zealand citizen, be a permanent resident, or hold a Subclass 405 (Investor Retirement) visa or a Subclass 410 (Retirement) visa as described in Schedule 2 to the Migration Regulations 1994.

How to apply for DASP

Depending on the amount of money held in the superannuation account, there are different ways in which to apply.

Where to send documents

Please email the above required documentation to service@wrapinvest.com.au and we’ll be in touch to process your request.

In the email please also supply your client’s:

  • full name
  • date of birth
  • account number/s
  • address.

Re-contributing COVID-19 early release superannuation amounts

Clients who’ve withdrawn amounts under the COVID-19 early release of superannuation program can now re-contribute them back into super if they choose. COVID-19 re-contribution amounts are not a new type of contribution – they are a personal contribution that the ATO will exclude from the client’s non-concessional contribution cap.

The applicable ATO-approved form must be provided to us before the contribution is made; otherwise we may not be able to process the request.

Your client will also need to complete a Direct Debit Request form to make a COVID-19 re-contribution.

Common questions about re-contributions

Can my client make a COVID-19 re-contribution without the ATO-approved form?

No, the client must provide notice by the ATO-approved form either before or at the time of making the contribution.

The ATO approved form can be found on the ATO website under Notice of re-contribution of COVID-19 early release amounts (NAT75394).
 

What happens if the declaration is received after my client makes COVID-19 re-contributions?

It’s a legal requirement we receive an ATO-approved form declaring the contribution is to be treated as a COVID-19 re-contribution at the time or before the contribution is made. If the form, including the date on the form, hasn’t been completed and submitted to the super fund, the contribution can’t be treated as a COVID-19 re-contribution.

We can accept the contribution as a personal contribution depending on the method used by your client to make the contribution and it will count towards your client’s non-concessional cap.
 

Can my client make multiple COVID-19 re-contributions?

Yes, your client can make multiple contributions between 1 July 2021 and 30 June 2030. The maximum amount contributed under this contribution type can't exceed the amount accessed by the client under the ATO's COVID-19 early release super scheme.
 

Can my client make multiple COVID-19 re-contributions covered by one ATO-approved form?

One ATO-approved form may cover multiple contributions in a financial year, as long as the form is provided to the super fund on or before the time when the contributions are made. 

Can my client claim a deduction on the personal contribution amount that is to be considered a COVID-19 re-contribution?

No, tax law doesn’t allow COVID-19 re-contributions to be claimed as a tax deduction. This is also noted in the ‘Requirements’ section of the ATO-approved form.
 

Can my client digitally sign the ATO-approved form?

Yes, we can accept digital signatures on the notice of re-contribution of COVID-19 early release amounts. 

Please note that you need to submit the electronically signed form and the Certificate of Completion from either your client’s or the lead adviser’s email address, or upload it via Request Centre. 


My client provided the ATO-approved form but didn’t make the re-contribution to your fund. What happens now?

The ATO will see from the super fund’s reporting that there isn’t any related personal contribution and no amounts would be treated as a COVID-19 re-contribution in that Fund.
 

What happens if the amount on the ATO-approved form is less than the amount contributed? 

The ATO will see from the super fund’s reporting that there is a difference and only treat the amount stated on the ATO-approved form as being excluded from the non-concessional contributions cap (provided this amount doesn’t exceed the approved COVID-19 early release amount).
 

What happens where my client declared on the ATO-approved form more than the amount contributed?

The ATO will see from the super fund's reporting that there is a difference and only treat the amount of the actual contribution as being excluded from the non-concessional contributions cap. 

The ATO will then treat the portion of the next personal contribution(s) in that financial year, if any, as a COVID-19 re-contribution up to the amount on the ATO-approved form or the approved early release amount, whichever is the lesser.
 

Is a COVID-19 re-contribution a preserved tax-free amount?

The COVID-19 re-contribution will be preserved until the client meets a condition of release. The contribution will add to the tax-free component of their superannuation account.

For more information about the COVID-19 changes to early release of super and pension minimums, please see ASIC’s MoneySmart website or the ATO’s COVID-19 page.

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