Usually, you can only access your superannuation once you have reached your preservation age and met a condition of release (such as retiring from the workforce or turning 65).
However, in limited circumstances, you may be eligible to access your super prior to reaching preservation age. One condition under which you may be able to request early
release of your superannuation is on ‘compassionate grounds.’
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What do I need to know?
Even if you meet the strict conditions, it’s important to consider how an early withdrawal will impact:
- your retirement income
- any tax you may need to pay
- insurances paid through your super
- any government benefits you’re receiving
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What are compassionate grounds?
Compassionate grounds include needing money to pay for:
- medical expenses for you or your dependants
- partial payment of home loans to avoid foreclosure of the loan
- modification of a home or vehicle for you or your dependants suffering a severe disability
- the cost of palliative care for you or your dependants
- funeral costs for a dependant
- medical transport for you or your dependants.
If you require financial assistance for any of these reasons, you may be eligible to access your super early on compassionate grounds.
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Can I apply?
To be eligible for the early release of superannuation on compassionate grounds, you need to meet certain criteria relating to the specific compassionate ground you are applying for e.g. medical treatment. You can find out more about eligibility criteria for compassionate grounds on the ATO’s website ato.gov.au
Applications for payments under compassionate grounds need to be made to the Australian Taxation Office (ATO).
If the ATO approves the early release of your super, you may then apply to AustralianSuper for a benefit payment. See the Application for a payment (compassionate grounds) form.
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How much can I withdraw?
The amount of super you can withdraw is limited to what you reasonably require to meet the unpaid expense or expenses. How much you can withdraw is dependent on approval from the ATO and subject to your super balance.
Compassionate ground payments are taxed as a super lump sum. If you're under 60 years old, this is generally taxed between 17% and 22% (including Medicare Levy) and if you are aged 60 or older, this is generally tax free.
Any payment made will reduce your super account balance and may affect any insurance cover you have. To maintain your insurance cover you’ll need to have enough money in your super account to pay for it. In some circumstances insurance cover can stop, such as if no contributions or rollovers are received in your super account for 16 consecutive months. To learn more about other factors that could impact your insurance cover, read the Insurance in your super guide.
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Eligibility criteria
A request to claim an early super payment on compassionate grounds can only be considered if you meet all conditions the ATO requires.
Condition ATO Eligibility criteria Condition 1 Early release of super is needed: - to pay for necessary medical treatment or medical transport for you or a dependent; or
- to enable you to make a payment on a loan, to prevent:
- foreclosure of a mortgage on your principal place of residence; or
- exercise by the mortgagee of an express, or statutory, power of sale over the person’s principal place of residence; or
- to modify your principal place of residence, or vehicle, to accommodate your special needs, or those of a dependent, arising from severe disability; or
- to pay for expenses associated with your palliative care, in the case of impending death; or
- to pay for expenses associated with a dependent’s:
- palliative care, in the case of impending death; or
- death; or
- funeral; or
- burial; or
- to meet expenses in other cases where the release is consistent with a ground mentioned in paragraphs (a) to (e), as the Regulator determines.
Condition 2 You have not yet paid the expense. Compassionate release of super can only be approved to help with unpaid expenses.
If you have already paid the expense (including by loan, credit card or money borrowed), you do not meet the eligibility requirements.Condition 3 You cannot afford to pay part or all of the expense without accessing your super i.e. you can’t pay the expense by: - getting a loan
- using your savings
- selling shares, investments, or assets.
Condition 4 You are, or have been, a citizen or permanent resident of Australia or New Zealand.
Current temporary residents, and former temporary residents who are not current Australian or New Zealand citizens or permanent residents are not eligible.Condition 5 You supply, with your application, all required supporting evidence including all unpaid invoices and/or or quotes. For further details about the eligibility conditions, go to the ATO website ato.gov.au
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How do I make a compassionate grounds claim?
If you believe that you are eligible to access your early super on compassionate grounds, follow these steps to make a claim. Complete each step correctly and include all required supporting documentation.
1. Collect the evidence to support your claim The evidence needed to access your super early is different for each of the situations under which you may be eligible. Details of the evidence required for each situation can be found on the Australian Tax Office (ATO) website at ato.gov.au 2. Complete the ATO application form You can complete the form online on the ATO website ato.gov.au. Firstly, you’ll need to link your myGov account to the ATO. Find out how to create a myGov account and link it to the ATO on the myGov website at my.gov.au. You can also request a paper application form by calling 13 10 20. 3. Wait for ATO approval The process takes up to 14 days for online applications, and up to 28 days for paper applications. The ATO will advise you of the outcome once they have assessed your application. If your application is successful, the ATO will notify AustralianSuper.
If your application to the ATO has been approved, you can then apply to us directly for the early release of your superannuation (refer to step 4).4. Complete your claim to AustralianSuper In addition to the Application for a payment (compassionate grounds) form, your submission must include: - Your ATO letter of approval
- Proof of identity documents as outlined on the application form, unless you have provided us with certified copies of these documents within the last 6 months
- A copy of your bank statement or utility bill if the amount of the benefit is above $10,000
- The account details of where you would like your payment made. Generally, we must pay any benefits to you, the member, however in some cases we may need to make payment directly to a third party such as a financial institution (e.g. for the foreclosure of a mortgage)
5. Submit your completed form and documents Submit the Application for a payment (compassionate grounds) form. Please send this form with your ATO approval letter and proof of ID (if you haven’t opted for electronic ID verification) to:
AustralianSuper
GPO Box 1901
Melbourne
VIC 3001.
Or you can upload scanned copies of your completed form and certified identification via our website at australiansuper.com/email
We will advise you if you need to provide further information.
Please allow 3 to 5 business days for your application to be processed and for payment to be made.