VIRGINIA TRIOLI:
You are watching ABC news breakfast. The Federal Government says that some bushfire victims could consider accessing their superannuation early on the grounds of severe financial hardship.
JOE O'BRIEN:
The Government says people should investigate whether they can claim death or disablement insurance through their super funds and he's urging regulatory authorities to process any claims quickly.
The Federal Superannuation Minister Nick Sherry joins us now from Canberra,
Nick Sherry, good morning.
SENATOR NICK SHERRY:
Good morning.
JOE O'BRIEN :
Now, first of all, if someone involved in these fires has lost a partner, what might they be entitled to in terms of accessing superannuation now?
SENATOR SHERRY:
Well, many people would be in a superannuation fund and most superannuation funds include death and disability insurance, so, as sad and tragic as these events are, and as stressful, individuals' family members should contact the superannuation fund and check the details for payout of death and disability insurance.
The second area concerns what are termed hardship and compassionate grounds. It is possible, there are clear parameters but in terms of compassionate grounds for example, individuals can access for things like funeral payments. Having said that, there are special payments being made by the government of $5000 for a funeral and that's a faster and quicker way to go.
So, there are grounds for applying to the regulator APRA and the funds for special payments on compassionate grounds and the other area is hardship, financial hardship.
Again, there are strict criteria but you can apply to the fund under the hardship provisions.
JOE O'BRIEN:
So, if people have lost their homes as well (someone may not have died), but they might have lost their home, they should also see if they can get money from their super fund?
SENATOR SHERRY:
They may qualify for hardship though there are quite strict laws, and there's little discretion.
They may qualify for hardship or compassionate grounds. One of my concerns at the moment in these circumstances is that in applications for death and disability insurance (and I certainly would expect a significant number of those applications), in these circumstances, individuals have lost because of fire destruction, a lot of their personal documents, things like wills and proof of identity, et cetera. So, proof of identity and those sort of legal requirements, I am currently having a look at so we can speed up this process as quickly as possible, given these circumstances.
JOE O'BRIEN:
Obviously, it would be better if people didn't raid their super funds.
We've seen some terribly distressing images on the last couple of nights. There was an old pensioner couple, an ethnic couple taken back to their home and there was nothing left. And they're just standing there saying they've got no insurance they don't know what they're going to do.
What can they - what can the Government do for people like this who are not insured? Are there any plans to help people who simply don't have insurance?
SENATOR SHERRY:
Well certainly. I mean, the Prime Minister indicated yesterday these communities will be rebuilt, houses, schools, all the infrastructure will be rebuilt and that's uncapped, that's the commitment of the Commonwealth Government and the Prime Minister working with the Victorian Government.
JOE O'BRIEN :
So, I'll just clarify there, if people have lost their homes and they don't have insurance, the Government will step in and the homes will be rebuilt.
SENATOR SHERRY:
Well communities will be rebuilt, and the details of that will be spelt out in the coming days and weeks.
JOE O'BRIEN:
Well, it's a, yeah, it's an important issue to clarify there, you say communities will be rebuilt, do you mean infrastructure or do you mean people's homes?
SENATOR SHERRY:
Well, clearly people's homes will be rebuilt once insurance claims are processed and again I've talked to the Insurance Council yesterday about the processes. They're very well aware for the need for speed to process claims and to assist individuals. It's a top priority.
JOE O'BRIEN:
But for people without insurance they still won't have access necessarily to government funds to rebuild those homes that were not insured.
SENATOR SHERRY:
Well, there are two categories of people here. There are those who are renting and I understand a substantial proportion would not have insurance for their personal possessions and there would be another group who are either under-insured or have no house insurance and the detail of assistance there, I'll clarify with the Government
And the Government will make an announcement in due course as part of the re-building package.
JOE O'BRIEN:
Okay, now just finally and briefly, the Opposition is accusing the Government of politicising this issue now by suggesting that some money in the stimulus package will be - could go to these areas that have been hit by bushfires. On the face of it, doesn't it appear to have politicised this issue?
SENATOR SHERRY:
Well, I think any uncertainty was cleared up by the statement by the Treasurer last night. The Prime Minister has made it clear that the communities will be rebuilt. It's uncapped. It doesn't depend on any parliamentary legislation. It does not depend on a nation-building and jobs package going through the Senate in the next two days.
JOE O'BRIEN:
Okay, Nick Sherry in Canberra, thanks very much for talking to us this morning.
SENATOR SHERRY:
Thank you.