Early Release of Superannuation

funds are preserved meaning they can’t be released for personal use unless a condition of release is met. These include the following;

• Retirement after preservation age (between 55 and 60, depending when you were born)
• Termination of employment after age 60.
• Attaining age 65.
• Permanent Disability (evidence is required by the trustee to satisfy the definition)
• Terminal illness where it is certified that death is likely within 12 months.
• Upon death
• Compassionate grounds
• Financial hardship

You can apply to the Australian Prudential Regulation Authority (APRA) for release of funds on COMPASSIONATE grounds but the final approval is given by the trustee of the superannuation fund. Compassionate grounds claims include;

Medical or Dental expenses for you or a dependent including transport. Treatment needs to treat a life threatening illness or injury, alleviate acute physical pain or chronic mental condition and treatment must not be readily available through the public health system or covered by private health or workers compensation.

Mortgage assistance to prevent your home being sold by your lender and does not include rent payments or arrears if the lender has not decided to sell.

Modifications to home or car to accommodate the special needs of someone with a severe disability.

Care for yourself or a dependent with a terminal condition. (palliative care)

Assist with funeral and burial costs after the death of a dependent.

You need to contact your superannuation fund to apply for early release on the grounds of SEVERE FINANCIAL HARDSHIP and it is up to the trustee whether to accept the application or not. You are eligible to claim;

If you are aged under 55 and 39 weeks you need to have been in receipt of an eligible Commonwealth income support payment for 26 weeks and able to demonstrate severe financial hardship.

If you are aged over 55 and 39 weeks you need to have been in receipt of a Commonwealth income support payment for 39 weeks since reaching age 55. You don’t need to prove severe financial hardship but have to declare you are not gainfully employed at the time of application.

Severe financial hardship means you are unable to meet reasonable and immediate family living expenses, which can include;

• Urgent household repairs not yet commenced or urgent medical treatment not yet undertaken.
• General bills such as gas, water, electricity, phone, rates or body corporate costs.
• Insurances such as house, car and medical.
• Motor vehicle repairs to make a car roadworthy.
• Education such as school fees, uniforms, books etc.
• Outstanding Medical bills
• Mortgage payments to cover minimum outstanding amounts
• Household goods only if they are essential such as a refrigerator.
• Credit cards and other loans but only the minimum outstanding amounts.

The maximum payments are $10000 per annum and all requests need to come with documented evidence. Also if you have other assets that could reasonably be sold to meet expenses (family home excluded) you are unlikely to meet the requirements. For example if you had net assets of over $50000 you may be ineligible.