For many Australians, superannuation is a major asset that provides significant tax advantages. However, there are strict rules governing when you can access it. Most people access their super when they retire, pass away, or become disabled. In limited situations, you may be able to access it earlier.

Early Access to Superannuation

There are two situations for possible early access. The first is financial hardship. You may qualify if you have been receiving an eligible government support payment for a continuous period and cannot meet your basic living costs. 

The second is on compassionate grounds. This covers specific needs like preventing the mortgage foreclosure of your home, or paying for medical treatment for a life-threatening injury or illness.

Accessing super on compassionate grounds requires a formal application to the Australian Taxation Office (ATO). You must support this application with documents like medical certificates or mortgage statements. If the ATO approves your request, it will then direct your super fund to release the necessary funds.

Beware of Scams and Misuse

You should personally manage this application process through your MyGov account. Be very cautious. The ATO has noticed that some medical and dental providers are exploiting this system. They may help people access super for cosmetic procedures, which are not valid grounds for release. 

All super fund members and SMSF trustees must understand the serious penalties for accessing super outside the legal rules. Never give your MyGov login details to a third party or let them make applications for you. Making false declarations can also lead to significant penalties.

Need Help?

If you have questions or concerns about accessing your superannuation early, please contact Bates Cosgrave for advice.