In limited circumstances your super can be accessed before you retire to assist you and your dependants.
Your fund can pay you or your dependants a benefit from your super if you meet a condition of release.
Conditions of release that may apply to a person in a disaster include:
- compassionate grounds
- severe financial hardship
- temporary incapacity
- permanent incapacity
- death.
Compassionate grounds
You can apply to the Department of Human Services (DHS) for a release under compassionate grounds.
For more information, you can go to the DHS website and read about early release of superannuation.
Circumstances where you may be granted a release under compassionate grounds include where you need to:
- pay for medical treatment or medical transport for you or a dependant
- make a payment on a loan to prevent you from losing your house
- modify your home or vehicle to accommodate the special needs of you or a dependant as a result of a severe disability
- pay for expenses associated with a death, funeral or burial.
The amount the trustee can pay is limited to what is reasonably required or, in the case of the payment of a loan in relation to your house, an amount equal to or less than three months' repayments or twelve months' interest on the outstanding balance.
People who need to apply to DHS in these circumstances can call the Early Release of Superannuation Benefits contact centre on 1300 131 060.
Severe financial hardship
To be eligible for this condition of release, you must have received Commonwealth income-support payments continuously for 26 weeks and be unable to meet reasonable and immediate family living expenses.
Only one lump-sum payment can be made in any 12 month period. The minimum amount that can be paid is $1,000 (unless your super interest is less than this amount) and the maximum amount is $10,000.
You must approach your super fund for further information about your eligibility for this condition of release.
Temporary incapacity
You may be eligible to receive a benefit if you have temporarily ceased to be gainfully employed due to physical or mental ill health, but are not permanently incapacitated.
You do not need to have fully ceased working, but you will generally not be eligible if you are receiving sick leave benefits.
The benefit must be paid as a non-commutable income stream - that is, as regular payments.
You must approach your super fund for further information about your eligibility for this condition of release.
Permanent incapacity
You may be eligible to receive all your benefits if you are permanently incapacitated.
Permanent incapacity means that you are unlikely, because of ill health (physical or mental) to ever engage in gainful employment of the type for which you are reasonably qualified by education, training or experience. At least two medical practitioners must certify this.
You must approach your super fund for further information about your eligibility for this condition of release.
Death
In most cases, a super fund must pay out the member's super interests on the death of the member. The legal personal representative of the member should contact the member's fund as soon as possible.
Last Modified: Tuesday, 20 March 2012