A Melbourne woman's desperate plea to access her pension after a decade of apartment defects left her financially ruined has been denied by red tape.
Construction company Shangri-La Construction went bankrupt at the end of March, shortly after completing ten residential blocks in Melbourne.
Many residents were in the process of suing over faulty construction work when the business collapsed, forcing customers to foot the bill for repairs themselves.
Mother-of-one Tamara Railton-Stewart, 48, bought her two-bedroom, two-bathroom Shangri-La apartment in 2014 for $649,000, news.com.au reports.
In December 2015 – after just a month of living in the unit – several leaks appeared after Melbourne was flooded by heavy rain.
The family were forced to live in the mold-soaked apartment during Covid lockdowns, with the resident convinced it was one of the factors that led to her then 16-month-old daughter being diagnosed as asthmatic.
Despite receiving a $2 million insurance payout to cover some of the defects over a ten-year period, the homeowner is still $39,000 behind on strata payments.
Tamara Railton-Stewart, 48, a mother of one in Melbourne, bought her two-bedroom, two-bathroom Shangri-La apartment in 2014 for $649,000
Ms Railton-Smith, a cancer survivor, has applied for early access to her pension out of compassion but has been turned down three times since February.
In response to her plea letters, Australia's Treasury Department said she does not meet the requirements because her bank has not yet threatened to foreclose on her home.
Because of the mold, she also lived elsewhere for some time, which is why the government does not consider the unit as her primary residence.
“I think people in my position should have access to their super,” she said.
“I'm not asking for a handout, just access to my own money.”
The resident is particularly furious that she cannot access her pension funds, while other Australians are reportedly using a loophole to access pensions to pay for cosmetic treatments such as breast enlargement or liposuction.
In March, the Albanian government was forced to issue an extraordinary warning that cosmetic surgeons were preying on Australians by encouraging them to squander their pension money on beauty procedures.
Assistant Treasurer Stephen Jones used the example to justify why the Labor government plans to make it harder for Australians to withdraw their super.
Construction company Shangri-La Construction went bankrupt at the end of March (photo: men working on a construction site in Melbourne)
Early access to pension is allowed in situations where a person is permanently disabled, has a physical or mental condition that prevents them from working, is dying or is their loved one.
Serious financial problems are also another reason for early access, but it is the individual's responsibility to prove that they urgently need the money for their retirement fund.
However, under current laws, the Treasurer or a Member of Parliament has the power to approve the release of an individual's pension.
Ms Railton-Smith was advised to seek advice from a financial adviser.
The Melbourne resident said surviving cancer was “easier” than her 10-year battle for the Shangri-La apartment.
“I would have to go through cancer ten times over if I never relived the nightmare of this apartment,” she said.
A detached block of Shangri-La units suffered $10 million in damage, including cladding problems and water leaks.