A complete guide
early access to super
Your super is your money, right?
Accessing your superannuation early is generally restricted to ensure that your retirement savings are preserved until you reach retirement age. However, in cases of severe financial hardship or on compassionate grounds, you may be eligible to withdraw some of your super early. It’s essential to understand the strict criteria and processes involved, as well as the financial implications of accessing your super early.
In this guide, we’ll explore the conditions under which you can access your super early, outline the process, and answer common questions around this sensitive topic. Our aim is to give you the clarity you need to make informed decisions and point you to the right resources for further assistance.
What Are the Conditions for Early Access to Super?
Severe Financial Hardship
If you are experiencing significant financial difficulties and unable to meet essential living expenses, you may be eligible to access a portion of your super.
Compassionate Grounds
You may be able to withdraw your super early if you need to cover specific expenses, such as medical treatment, mortgage payments to prevent foreclosure, or modifications to your home due to a disability.
Each category has its own set of eligibility criteria and limits on how much you can withdraw.
1. Early Access Due to Severe Financial Hardship
To access your super due to severe financial hardship, the Australian government sets out specific eligibility criteria. You must meet the following conditions:
- You must have been receiving an eligible income support payment from Centrelink or the Department of Veterans’ Affairs for at least 26 consecutive weeks.
- You must be unable to meet reasonable and immediate living expenses.
You need to apply to your super fund directly for release of super on financial hardship grounds. The ATO does not process severe financial hardship requests.
If you meet these criteria, you can access a lump sum of between $1,000 and $10,000. You can only apply once in any 12-month period.
For more details on financial hardship eligibility, visit the Services Australia website.
2. Early Access on Compassionate Grounds
You can also apply for early access to your super on compassionate grounds for specific circumstances, such as:
- Paying for medical treatment or transport if it’s necessary for a life-threatening illness or condition.
- Making a payment on your mortgage to prevent your home from being sold by the lender.
- Modifying your home or vehicle to accommodate a severe disability.
- Paying for palliative care or funeral expenses for a dependent.
You can only withdraw the amount necessary to cover the expenses. This amount is generally limited to what you require to meet the specific need, and in some cases, it may be less than your full super balance.
For more detailed information, check the ATO’s guide on early access on compassionate grounds.
3. How to Apply for Early Release of Super
Applying for early access to your super depends on whether you are claiming due to financial hardship or on compassionate grounds:
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For severe financial hardship, you apply directly to your super fund. Your fund will require evidence that you have met the criteria, including documentation from Centrelink confirming your income support payments.
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For compassionate grounds, you apply through the Australian Taxation Office (ATO). You will need to provide documentation supporting your claim, such as medical reports or evidence of your mortgage stress.
You can find more information and the relevant forms for compassionate grounds on the ATO’s website.
Frequently asked questions
No, you must meet the specific requirement of receiving eligible income support payments for at least 26 consecutive weeks to access your super due to severe financial hardship. If you do not meet this condition, you cannot apply on these grounds. You can read more about this on the Services Australia website.
If you’re eligible under severe financial hardship, you can withdraw between $1,000 and $10,000 once within a 12-month period. It’s important to check with your super fund for their specific rules, as they can vary slightly.
Yes, you may be able to access your super early for medical treatment overseas if the treatment is necessary to treat a life-threatening condition or alleviate acute pain or suffering. You will need to provide documentation from a registered medical practitioner, and approval from the ATO is required. Check the ATO’s page on compassionate grounds for more details.
If your application is rejected, you may need to explore other financial assistance options, such as government benefits or financial counselling services. The ATO provides clear reasons for rejections and may provide guidance on alternative support programs. You can find more about these options at moneysmart.gov.au.
Yes, withdrawing super early can significantly impact your retirement savings, as you are reducing the amount available for investment growth. Before accessing your super, it’s important to consider the long-term consequences for your retirement. Seeking financial advice from a qualified professional can help you weigh the pros and cons.
Seek Professional Guidance
While accessing your super early can provide immediate financial relief, it’s crucial to consider the long-term impacts on your retirement savings. If you’re unsure about whether accessing your super early is the right option for you, it’s always best to seek advice from a licensed financial adviser. They can help you assess your financial situation and explore other options that may be available.
For more information and guidance, visit the ATO’s official guide to early super release.
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