Perth mum denied superannuation hardship funds due to New Zealand visa restrictions

Red tape and a visa oversight have left a Perth mum on ‘Struggle Street’ because of rights afforded to New Zealanders under residency restrictions.

Stacey Cropp, who moved to Western Australia eight years ago, ran into financial difficulties when both her and her fiance suddenly lost their jobs.

With the couple struggling to keep abreast of bills and feed their children Ms Cropp turned to her superannuation fund, seeking help under hardship provisions.

The pair had exhausted all financial avenues - turning to friends and families to help pay rent, when she says she took to her last resort and decided to pull some of her Australian super, to get by until they found new jobs.

However, when she went to apply she discovered the visa agreement for many Kiwis left her ineligible.

Under super regulations, in order to access a portion of your fund due to financial hardship, you need to have claimed a government income support payment for 26 consecutive weeks.

But as a New Zealand citizen she was never eligible to claim the Centrelink payments in the first place.

“I can't even put it into words, it's been so tough, particularly on our kids.” Ms Cropp said.

“We couldn't afford to run the car, we couldn't afford to feed the kids and if it wasn't for some really great friends and family that we've got, we wouldn't have survived.

“It's pretty dire, we have just about lost the house a couple of times, if it wasn't family lending us money to pay our rent. I don't know how many times without foods in the cupboards for the kids.

“I always figured that it would be there for when we retired but if you know, people do get into strife, it's there to back them up and it is their hard earned money.”

Like many New Zealanders, Ms Cropp came to Australia on a non-protected 'Special Category Visa'.

And because she isn't deemed a permanent resident, both government support and therefore super hardship provisions are not available to her.

Professor Brett Davies of Legal Consolidated said the limitations don’t stop there - with many New Zealanders with the same visas also unable to access HECS and the National Disability Insurance Scheme.

“It's a little bit unfriendly for people in New Zealand they're coming to Australia, they're working here, they're paying tax, they're paying their superannuation contribution, but they can't get early access,” Prof Davies said.

“They will get a visa when they arrive, but it's a temporary visa and therefore they don't get access to Centrelink and those sorts of benefits.”

But there is a way around it.

“It's important that you move from your automatic temporary visa, to a permanent citizenship,” he added.

The catch? It can take up to 10 years and costs about $7000.

The Assistant Treasurer is responsible for the legislation and in a statement he said the issue was currently being looked at:

“The Government is reviewing the current arrangements as the compassionate grounds and severe financial hardship rules have not changed substantially since 1997.”

Thankfully for Ms Cropp’s family, her husband is an Australian citizen, so he can apply for Centerlink.

But she still wants to warn others of the catch, if you become unemployed.

“Obviously something has to change because when you are looking at making someone homeless with three kids, because the legislation doesn't fit them, it's ridiculous,” she said.