Your super is designed to help support you in retirement, so you can usually only access it once you've reached your preservation age of 60 and met a condition of release. This may include retiring from the workforce, stopping work for an employer on or after 60, or turning 65, even if you’re still working.
In limited circumstances, you may be able to get some of your super early. One condition under which you may be able to request early
release of your super is on 'compassionate grounds'.
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What do I need to know before applying?
It is important that you consider how an early withdrawal of your super on compassionate grounds may impact:
- your retirement income
- any tax you may need to pay
- any insurance cover you have through the Fund − if you want to keep it, you’ll need to have enough money in your super account (read the 'When cover stops’ section in the Insurance in your super guide available at australiansuper.com/InsuranceGuide)
- impacts it will have on benefits you’re receiving, for example Centrelink, WorkCover, family tax benefits and child support payments.
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What are compassionate grounds?
There are limited circumstances where you can access your super early on compassionate grounds to meet expenses that you cannot meet to pay for:
- medical expenses for you or your dependants
- partial payment of your home loan (main residence) to avoid foreclosure of the loan
- modification of a home (main residence) 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, or
- medical transport for you or your dependants.
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Check that you’re eligible
You must meet the conditions for early release on compassionate grounds below to apply. These circumstances don’t include meeting general day-to-day living expenses. If you need help for this reason, you may be eligible to apply on financial hardship.
Condition ATO Eligibility criteria Condition 1 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 2 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 ATO determines.
Condition 3 You or your dependents’ expense amount is unpaid, or the expense amount has been borrowed (from family or friends, bank loan, credit card or ‘pay later’ services) and remains outstanding. When you submit your claim application, additional documents will need to be provided. Condition 4 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 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 Australian taxation office(ATO) website ato.gov.au
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How do I make a compassionate grounds claim?
Applications for payments under compassionate grounds need to be made to the ATO to determine eligibility.
If the ATO approves your superyour application, you can then apply to AustralianSuper for a benefit payment. See the Application for a payment (compassionate grounds) form.
To apply, follow the steps below and include the required documentary evidence to help avoid delays and give your claim the best chance of approval.
1. Collect the evidence to support your claim The evidence to support your claim is different for each of the compassionate grounds set out at Condition 2, 3 or 4 (in the ‘Check that your eligible’ section above). Details of the evidence required can be found on the 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 based application form by calling them on 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. Once the ATO has assessed your application, they’ll advise you of the outcome. If your application is successful, the ATO will notify AustralianSuper and update you through the myGov portal. You may also be contacted by phone or text message, in addition to the letter in myGov.
If your application to the ATO has been approved, you can then apply to us directly for the early release of your super (refer to step 4).4. Complete your claim to AustralianSuper In addition to completing the Application for a payment (compassionate grounds) form, your submission must include: - Your ATO letter of approval, either original or a certified copy.
- Proof of identity (ID) documents which have been certified, as set out in form, unless you have provided us with certified copies of these documents within the last 6 months.
- If you’re withdrawing more than $10,000, we’ll also require extra evidence which is set out in the form, such as a certified copy of a utility bill(s) or bank statement(s).
Documents must show the same name and residential address as your claim and be dated within the last 3 months. - The Bank account details for where you’d like your payment made. We’ll usually pay the benefit to you or to a joint account in your name. In some cases, we may pay a third party, such as a financial institution, to help prevent mortgage foreclosure.
5. Submit your completed form and documents Submit the Application for a payment (compassionate grounds) form with your ATO approval letter and proof of identity (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/upload-document. Select Apply for a payment (compassionate grounds) from the dropdown menu when uploading your form and documents.
We'll advise you if you need to provide further information.
If all required documentation has been received, please allow 3 to 5 business days for your application to be processed and for payment to be made. -
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 account balance.
Compassionate grounds payments are taxed as a super lump sum. If you're under age 60, the taxable component of the taxed element of your withdrawal is taxed at the lower of your marginal tax rate or 22% (including Medicare levy) and if you’re 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.