The Super Raid: An Unfortunate Reality for Struggling Aussies

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Australians are raiding their superannuation funds at an alarming rate, with the money used to cover health services, including dental care, IVF treatments and weight loss programs.

Nonetheless, it’s also being utilised for home remodelling projects and purchasing new vehicles—causing financial counsellors to worry.

The Australian Taxation Office (ATO) allows citizens to access their funds before they become due, provided they prove that no other method of paying for a crucial cost is available.

Dentist Dr Alex Fibishenko has noticed an increasing trend of patients accessing their superannuation to help cover the cost of otherwise unaffordable treatments for pain relief. He asserted, “People in need can access funds that would’ve been inaccessible without it and ultimately make a difference in managing their discomfort.”

A staggering number of individuals have taken advantage of super early payments for healthcare expenses in only four years, soaring from under 23,000 to an impressive 30,000 annually. Unfortunately, these payments are taxed at 22% and have costly long-term repercussions.

Xavier O’Halloran, director at Super Consumers Australia, warned individuals to be “extra vigilant” when accessing their super funds before the set schedule.

“If you are facing financial hardship,” he continued emphatically, “[you] should take advantage of the free financing counselling available for all Australians.”

The National Debt Helpline is a great resource if you’re facing monetary hardships. They can offer guidance and advice on all available options to benefit your situation. Don’t feel like tapping into your superannuation early is your only option – plenty more out there!

O’Halloran warned people to be wary of the surge in scams within the industry.

“It is crucial to be keenly aware of this. If someone attempts to contact you and states, they can help you access your retirement savings early; it should raise eyebrows. Exercise caution, for these offers, may not always be as beneficial as promised,” he said.

If you need immediate assistance, don’t hesitate to call 1800 007 007 for help from the National Debt Helpline.

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