1.1.E.260 Extreme financial hardship - income stream withdrawals


This applies when an income support recipient is commuting an income stream (1.1.I.70) and wishes to access a hardship amount (section 9A(7)). It is not to be confused with hardship as defined in 1.1.S.120 and 1.1.S.125.


The Secretary determines that a person is in extreme financial hardship if he or she is satisfied that:

  • the income support recipient's circumstances are exceptional and could not reasonably be foreseen at the time the person purchased the income stream,
  • the amount commuted is needed to meet UNAVOIDABLE EXPENDITURE, and
  • the income support recipient has insufficient LIQUID ASSETS or other assets (excluding the individual's principal home) that could be realised to avoid the extreme financial hardship.

Act reference: SSAct section 9A(7)-'hardship amount', section 9A(7)-'unavoidable expenditure', section 9A(7)-'liquid assets'

Policy reference: SS Guide Commuting an Asset-Test Exempt Income Stream

Last reviewed: