Super is designed for retirement, but the ATO says early access may be available in very limited circumstances, including compassionate grounds, severe financial hardship, terminal medical condition, temporary incapacity and permanent incapacity.
That is why it is important to approach early access carefully. It is not a general cash-out option, and eligibility depends on the specific reason, the evidence you can provide, and whether the ATO or your super fund is the decision-maker for that pathway.
When may you be eligible for early access to super?
1. Compassionate grounds
The ATO says compassionate release is only available for specific expenses, not general day-to-day hardship. Eligible categories include certain medical treatment, medical transport, modifying a home or vehicle for a severe disability, palliative care for a terminal illness, funeral or burial expenses for a dependant, and preventing foreclosure or forced sale of your home.
Before applying on compassionate grounds, the ATO says you should contact your super fund to confirm it will release the money, check there is enough in the account to cover the expense and any tax withholding, understand any fees, and check the effect on insurance attached to the account. The ATO also notes withholding on compassionate release generally can be up to 32% of the amount withdrawn.
2. Severe financial hardship
If you are seeking early access because of severe financial hardship, your super fund makes the decision, not Services Australia. Services Australia says you may be considered in severe financial hardship if you are unable to pay reasonable and immediate essential family living costs, have been receiving an eligible income support payment for 26 continuous weeks with no gaps, and are receiving that payment on the day you apply. There is a different rule for people who are over preservation age and have not retired.
Services Australia also says your fund may ask for a letter confirming whether you meet the income support requirements, but even if you meet those requirements, the fund may still decide not to release your super.
3. Terminal medical condition
The ATO says you may be able to access your super early if you have a terminal medical condition. In general, this requires certification by 2 registered medical practitioners, with at least one being a specialist in an area related to the illness or injury. The ATO also says a payment can be tax-free if the terminal medical condition requirements are met at the time of payment or within 90 days after payment.
4. Temporary incapacity
The ATO says temporary incapacity may apply if you are temporarily unable to work, or need to reduce your hours, because of a physical or mental medical condition. It also notes this condition of release is generally used to access insurance benefits linked to your super account.
5. Permanent incapacity
The ATO says permanent incapacity may apply if your ill health makes it unlikely that you will engage in gainful employment for which you are reasonably qualified by education, training or experience. Whether benefits can be released is also subject to the governing rules of your fund.
Who do you apply to?
For compassionate grounds, you generally apply through the ATO. For severe financial hardship, you apply through your super fund. For other reasons, including incapacity-based access, Services Australia says you should contact your super fund to discuss how to apply.
What should you check before applying?
Before applying, it is worth checking:
- whether your situation fits one of the limited legal categories
- what evidence is required
- whether tax may apply
- whether early release could affect insurance attached to your super
- whether it could affect Centrelink or other payments
Services Australia says early release of super may reduce Centrelink payments and may affect taxable income, while the ATO warns there are consequences for illegal early access schemes.
Lost or forgotten super can matter too
Before moving forward, it is also worth checking whether you have other super accounts. The ATO says you can use ATO online services to track your super, find accounts you have forgotten or lost touch with, check ATO-held super, and consolidate multiple accounts.
ClaimSure's process
At ClaimSure, we keep the process simple:
1. Complete the form
Start with a quick Free Claim Check.2. We call to confirm your circumstances
We speak with you to understand your situation and what kind of support you may need.3. We help identify your super accounts
We can help you review your current super and any lost or forgotten accounts that may matter. The ATO says ATO online services can help locate forgotten or lost accounts.4. We review your potential options and next steps
We help you understand whether there may be an early access to super pathway worth exploring and what the next step may look like.Start with a Free Claim Check
If you are unsure whether early access to super may be available, the safest first step is to review your circumstances properly. Early release is only available in limited situations, and the correct pathway depends on the facts of your case.
Start your Free Claim Check to review your options and next steps.Start with a Free Claim Check
Wondering if any of this applies to your situation? Reach out and we'll review your circumstances together — no obligation, plain English.
Free Claim Check →