Exploring Compassionate Early Release Of Super
Superannuation is designed to provide for your retirement, but there are limited circumstances where you can access your super early on compassionate grounds. These provisions are in place to help meet urgent expenses for you or your dependants when other options have been exhausted.
The ATO oversees applications for the compassionate release of superannuation. It’s important to understand the specific situations that may qualify and the process involved.
Compassionate grounds cover a range of circumstances, including:
- preventing foreclosure or forced sale of your home;
- medical treatment for you or your dependants;
- medical transport for you or your dependants;
- modifying your home or vehicle to accommodate special needs arising from severe disability;
- palliative care for terminal illness; and
- death, funeral or burial expenses for your dependants.
Generally, applications need to be for unpaid expenses – you can’t claim for costs you’ve already covered. The amount released from your super must be a single lump sum, not exceeding what’s reasonably required.
Before applying to the ATO, it’s crucial to contact your super fund. The fund can confirm if it’ll release your super early on compassionate grounds, check if you have sufficient funds (including for tax withholding), advise on any fees and explain potential impacts on your insurance.
Remember, accessing your super early should be a last resort. It’s your future financial security at stake. However, when faced with genuine hardship, it’s reassuring to know that this option exists to help through difficult times.
Important: Clients should not act solely on the basis of the material contained here. Items herein are general comments only and do not constitute or convey advice per se. Also, changes in legislation may occur quickly. We, therefore, recommend that our formal advice be sought before acting in any of the areas.
