No Win - No Charge

I have an injury/illness – Can I access my super?

    financial hardship
    11 June 2019

    The financial impact of having an illness or injury can be devastating for you and your family.  Did you know that you may be able to relieve some of that financial stress through your super?  

    Depending on your individual circumstances, you may be able to make an early withdrawal from your super and you may also be eligible to claim an insurance benefit. 

    Can I access my super?
        
    The Australian Tax Office advise that you may be able to access your super before retirement age under the following circumstances:

    •    You suffer from a medical condition (physical or mental) and are permanently incapacitated for work. 

    •    You have a terminal illness. 

    •    On compassionate grounds for you or a dependent (i.e. for medical treatment, modification of a house or vehicle, making a payment on a loan if you are going to lose your house). 

    •    You are under severe financial hardship and have been receiving a Centrelink payment for a continuous period of 26 weeks.

    •    Your employment is terminated and the balance of your super account is less than $200.00.

    It is important to obtain financial advice before withdrawing your super as there may be tax implications or implications on other sources of income you receive, such as Centrelink or Worker’s Compensation payments.

    Can I make an insurance claim?

    If you have an injury or illness, you may also be eligible to claim an insurance benefit from your super fund.   If your claim is successful, the benefit will be paid from a policy and not from your super.  Depending on your insurance cover, you may be able to make more than one claim.  Many super funds offer the following types of insurance:

    •    Total and Permanent Disablement (TPD): is an insurance benefit for super members who can no longer work due to an injury or illness. For a successful claim, you must satisfy the super fund’s policy definition of TPD.  If the claim is successful, the benefit will usually be paid as a lump sum. 

    •    Income Protection insurance (also known as salary continuance): is usually paid as a monthly benefit if you are temporarily, partially or totally disabled for work due to an injury or illness.  A typical policy will cover up to 75% of your pre-injury wage or will specify a maximum monthly benefit.

    Trust Zaparas to care for your family

    We understand that super can be complex. Our dedicated team of lawyers can review your super and insurance entitlements and determine if you have a claim. We have a ‘No Win, No Charge’ policy.  This means you will only pay if your claim is successful. 

    Contact your local Zaparas Lawyers office for an obligation-free appointment. 

    *This piece was written by Sharni Bell, Lawyer in the Zaparas Lawyers Superannuation team

    References 
    https://www.ato.gov.au/Individuals/Super/Withdrawing-and-using-your-super/Early-access-to-your-super/