We regularly receive calls from people who are experiencing domestic violence and are seeking advice through our free enquiry process regarding their options for financial support.
There are several options available to people experiencing domestic and family violence to obtain financial support. For example, they may have fled a violent relationship (often at short notice) or are planning to do so and need money to pay for rent and other living expenses. The options covered by this blog include:
- claims for TPD;
- claims for income protection; and
- early access to super on the grounds of financial hardships.
Unfortunately, there is no way to get early access to your super due to experiencing family violence alone.
Can I claim Income Protection or Total and Permanent Disability (TPD) as a survivor of domestic violence?
As a part of our free enquiry process, we regularly conduct investigations into people’s active superannuation fund accounts and discover that they have superannuation insurance cover attached to their accounts.
If, as a result of the family violence, you are suffering from an injury (including a mental injury/illness) and unable to work, you may have a claim for insurance cover attached to your superannuation account. The main types of insurance cover that may be attached to your superannuation insurance cover include:
- Income protection cover; and
- Total and permanent disability (TPD) cover.
A claim for income protection benefits or a TPD benefit may be an option for you if you are unable to work due to a psychological or physical medical condition. If you’re unsure if you meet the criteria for these types of claims, you can talk to us for free to find out your options.
What is income protection?
Income protection cover provides a monthly income benefit paid to you if you are unable to work temporarily, due to an injury or illness (including a mental illness). Claims typically take less than three months to be approved. Income protection benefits can provide you with regular monthly payments to help cover living costs, provided you satisfy the policy requirements.
You can read more about income protection in our earlier blog, “What is income protection and how do income protection claims work?”
What is a TPD claim?
TPD cover provides a one-off lump sum benefit if you have to stop work due to injury or illness (including mental illness). Claims typically take between six to nine months to be approved. TPD benefits can provide you with a more substantial, one-off lump sum payment which may be enough to buy a car or for a house deposit, provided you satisfy the policy requirements.
If your TPD claim is approved, you may also be entitled to access all of your superannuation account balance, in addition to the TPD benefit, and you may receive a tax concession on the amount you withdraw.
You can read more about TPD claims in our earlier blog, “Your guide to making a successful TPD claim”.
Can I claim early access to superannuation due to severe financial hardship caused by domestic violence?
If you need urgent financial support, you may be able to apply to your superannuation fund for early access to your superannuation due to severe financial hardship. You may be able to apply for access to up to a maximum of $10,000 from your superannuation account balance.
The requirements to access your superannuation early due to severe financial hardship are different, depending on whether you have reached your preservation age, which is the age at which you can access your superannuation if you are retiring.
Early access to super if you are under the preservation age
If you are under your preservation age, you must meet both of the following requirements:
- You must have received eligible government income support payments (i.e. Centrelink payments of some kind) continuously for 26 weeks (approximately 6 months); and
- You must be able to demonstrate you cannot meet reasonable and immediate family living expenses.
If you are under your preservation age and satisfy the above requirements, you may be able to access up to a maximum of $10,000 from your superannuation account balance. You will likely pay tax on any withdrawal and should seek financial advice before making any withdrawal prior to reaching preservation age.
Early access to super if you are over the preservation age
If you are over your preservation age, you must meet both of the following requirements:
- You must have received eligible government income support payments continuously for 39 weeks (approximately 9 months); and
- You must not be gainfully employed at the time of applying.
If you are over your preservation age and satisfy the above requirements, there is no limit on the amount you can access from your superannuation account balance.
Supporting documents needed for early access to super
The types of documents you might need to provide your superannuation fund to access your superannuation early due to severe financial hardship may include:
- A letter from Centrelink confirming you have been receiving income support payments for the necessary period (called a Q230 letter);.
- Certified identification documents (i.e. a driver’s licence or passport). These documents will need to be certified by a justice of the peace, police officer, post office manager, pharmacist or lawyer;
- Copies of outstanding bills or bank statements which demonstrate your financial position and that you cannot afford immediate family living expenses.
Get help from a disability insurance lawyer
It is important to get advice about your insurance cover or claim as early as possible. We can advise you about your options and provide you with a referral to other support services or to a discrete financial advisor.
We are experts at TPD and income protection claims and can assist with such claims, giving you confidence that you are claiming your maximum entitlements. We have worked with many survivors of domestic and family violence, and we have special processes related to communication, confidentiality and privacy.
We provide free advice and run claims on a ‘no win, no fee’ basis, so it costs you nothing to find out where you stand.
Contacting Berrill & Watson
📞 Melbourne: 03 9448 8048
📞 Brisbane: 07 3013 4300
📞 Anywhere else in Australia: 03 9448 8048
How we charge
We are Australia's best-value superannuation/insurance law firm. Other law firms charge nearly double (& sometimes more than double) what we charge. So, if you get a quote from them, or have a cost agreement, ask us what we will charge you.