Early release of superannuation may be within reach for those experiencing financial hardship from a residential mortgage or needing property modifications
The Australian Government has policies in place to cater for people who encounter financial hardship and require assistance paying a mortgage or modifying a property. Those experiencing these circumstances may be eligible for the early release of super to assist with the financial hardship
Mortgage assistance can help prevent a home being sold by the lender with whom the homes mortgage is with (Department of Human Services). Eligibility for an early release of superannuation for mortgage assistance may be approved if (Department of Human Services):
- the mortgagee is threatening to repossess or sell the home due to arrears on the mortgage
- the property under threat is the owners usual place of residence
- the owner is responsible for the mortgage repayments, and
- the owner can’t afford to pay the arrears without accessing his/her superannuation.
Eligibility for mortgage assistance does not accommodate for the following circumstances (Department of Human Services):
- the owner is not in arrears on the mortgage but expect to have difficulty making future repayments
- the owner is in arrears on the mortgage but the mortgagee is not threatening to repossess or sell the home, or
- rental arrears.
The Government also allows for early release of super for modifications to the home if (Department of Human Services):
- the owner or a dependent has a severe disability, and
- the owner needs to modify the home to accommodate their own needs, or the needs of a dependent, in the case of the severe disability, or
- the owner needs to purchase disability aids to accommodate the severe disability, and
- the owner can’t afford to pay for them without accessing their superannuation.
Eligibility for an early release of superannuation for home modification expenses will not apply if (Department of Human Services):
- the owner or a dependent medical condition has not been diagnosed as a severe disability
- the owner is applying to modify a dependent home that is not the principle place of residence, or
- the owner or a dependent is unable to work due to a severe disability and help is required to pay the living expenses .
Instructions on how to apply for the early release of superannuation for mortgage assistance can be found via the Australian Government, Department of Human Services http://www.humanservices.gov.au/customer/services/centrelink/early-release-of-superannuation