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Options for getting early superannuation
The Australian Taxation Office (ATO) outlines only a few options for getting your super early:
- Permanent incapacity for work
- Severe financial hardship
- Compassionate grounds
- Leaving Australia permanently
Severe financial hardship
It is best to contact your super fund and double check their rules for early super. If they allow early release you must prove that you have been receiving income support for a continuous period of 26 weeks. You must also prove that you cannot meet reasonable, immediate family living expenses.Leaving Australia permanently
If you are a temporary resident, you will almost certainly be able to claim any super that you have collected as a lump sum. Contact the ATO and explain your situation. Permanent residents of Australia are not eligible for this option as they have the opportunity to retire in Australia.Compassionate grounds
If the rules of your super fund allow early release of benefits, compassionate grounds should be defined. Applicable cases for early super release based on compassionate grounds are:
- Medical treatment for serious conditions that is not readily available through the public health system
- Transport for medical treatment
- Changes to a home or vehicle because of a severe disability
- Palliative care
- Funeral and burial expenses
- Prevention of the forced sale of your home by your mortgage provider.
In the first instance The Australian Prudential Regulation Authority (APRA) must consider your application and then your fund can decide whether or not to allow early access.
Illegal early access to superannuation
It is certainly advised to avoid illegal schemes (often promoted by suspicious advertising) that offer to release your super money early. Such action could cause you heavy tax and legal penalties. It’s almost certain that you will lose any saved money in your superannuation fund if you are involved in fraudulent attempts at early access. If you do encounter any such organization you should report them to the Australian Securities and Investments Commission (ASIC) or the ATO.In addition, if you're under the age of 55, beware of financial advisers offering to pay out your superannuation in cash. “Some cases we've taken action against have involved the theft by unscrupulous advisers of all or part of the consumers' superannuation benefits”, says ASIC's executive director of consumer protection, “In other cases we've seen financial advisers take large fees before forwarding the remainder of the super benefit to the client. You should be aware that you can only gain early access to your preserved super benefits in restricted circumstances.”
Normal practice for superannuation (under the Superannuation Industry Supervision Act of 1993) is to receive all saved funds at the age of 65 or after the age of 55 if you are retired at that time. However, if you feel that you may qualify for early release of your superannuation funds, contact your fund and explain your needs. Whilst it may seem difficult to gain access, with a lot of paperwork and regulations to overcome, such measures are intended to protect the money that you have worked so hard to save.
