Early release of superannuation on financial hardship grounds 003-09020000

Current Zero Rate (CZR) and the 14 day rule

Periods of Current Zero Rate (CZR) are a break in payment of income support. The only exception is when the customer is CZR because of the inclusion of an Adjusted Disability Pension from the Department of Veterans’ Affairs in the income test (CZR-DFISA) before 1 January 2022.

This is because CZR generally means the customer has income over the income threshold in that fortnight.

A customer's income support payment may have been suspended, and then restored from a later date. In these cases, if the resulting gap is less than 14 days, the gap can be disregarded when assessing a continuous period.

If a payment is cancelled and a new payment granting with gap between them of more than 1 day, the continuous payment will be broken.

Examples - CZR (income) and continuous periods

Table 1

Example scenario

Calculation

Simone was receiving Parenting Payment from 1 January 2019.

Simone was Current Zero Rate (CZR) for 2 fortnights in May 2019 because of income from a part time job.

Simone applies for Early Release of Superannuation on 1 August 2019.

Simone had 2 fortnights at CZR. CZR periods do not count as continuous time for receiving an Income Support payment.

Simone is ineligible as she has not been on an eligible income support payment for a continuous period of 26 weeks.

Examples - applying the 14 day rule

Table 2

Example scenario

Calculation

Tom was receiving JobSeeker Payment (JSP) from 18 January.

Tom's payment was suspended on 2 June Tom travelled to New Zealand. JSP was suspended.

Payment was restored on 10 June when Tom returned to Australia.

Tom has not reached preservation age and so will be assessed on the continuous period rule.

Although Tom did not get payments while he was overseas, it was for less than 14 days.

This gap can be disregarded for the purposes of determining the continuous period.

Assuming Tom still has a current payment, Tom will meet the 26 week continuous period criteria on 18 June.

Paul was receiving JobSeeker Payment (JSP) from 10 February.

Paul travelled to Japan on 3 July for 5 weeks. Payments were suspended.

Paul's payment was restored on 7 August on returning to Australia.

Paul has not reached preservation age and so will be assessed on the continuous period rule.

Paul was not eligible for early release of superannuation on 7 August.

While it has been 26 weeks since Paul started to get JSP, the period overseas was 14 days or more.

Paul's 26 week continuous period will now restart.

Sarah was receiving JobSeeker Payment (JSP) from 12 February.

Sarah's payments were suspended on 22 June when she was incarcerated.

Sarah's payment was restored on 1 July on release from prison.

Sarah has not reached preservation age therefore will be assessed on the continuous period rule.

Sarah did not get payments while in prison, it was for less than 14 days. Payments were restored. The gap can be disregarded for the purposes of determining the continuous period.

Assuming Sarah still has a current payment, the 26 week continuous period will be met in July.

Note: If Sarah had been in prison for 14 days or more:

the continuous period would have been broken
a new 26 week continuous period would start when payments were restored

Clarence was born on 26 May 1960.

Clarence received Disability Support Pension (DSP) from 18 March until 23 June (approximately 14 weeks).

On 24 June, Clarence became temporarily employed and no longer met the income test.

Clarence reclaimed and was granted DSP on 25 May and has continued on payment.

As Clarence was born on 26 May 1960, the preservation age is 55.

Assuming Clarence remains on payment, Clarence will have 39 weeks on payment on 19 November.

Even if Clarence has another break in payment after that date, the 39 week requirement for an early release of superannuation will have been met.

Clarence does not need to be current on payment for an eligible letter to be issued.

Preservation age for access to superannuation

Table 3: This table advises the earliest age at which a customer can normally access their superannuation. It is called the preservation age. See the Australian Taxation Office website for more details on preservation age.

Date of Birth	Preservation Age
Before 1 July 1960	55
1 July 1960 - 30 June 1961	56
1 July 1961 - 30 June 1962	57
1 July 1962 - 30 June 1963	58
1 July 1963 - 30 June 1964	59
From 1 July 1964	60

Australian Taxation Office website

How tax applies to your super

Early access to your super

Intranet links

Early Release of Superannuation under Severe Financial Hardship Grounds

Contact details

Deduction and Confirmation Branch

Operational Information