SMSF In-House Assets

Understanding early access to Super

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Superannuation is intended to support people during their retirement. In Australia, you can generally access your superannuation funds when you reach 60 and have retired, or when you turn 65, even if you are still working. Sometimes life can throw us some curve balls and in very limited circumstances it’s possible to access your super earlier than the preservation age. Some of these circumstances include:

First home super saver scheme

How you can use some of your eligible voluntary super contributions to help buy your first home using the First home super saver scheme.

Access on compassionate grounds

You may be allowed to withdraw your super early on compassionate grounds to pay for:

  • medical treatment for you or your dependant
  • medical transport for you or your dependant
  • modifications to your home or vehicle to accommodate your or your dependant’s special needs arising from a severe disability
  • palliative care for you or your dependant
  • death, funeral or burial expenses of your dependant
  • preventing foreclosure or forced sale of your home

Terminal medical condition

You may be able to access your super if you have a terminal medical condition and all these conditions are met:

  • Two registered medical practitioners have certified, jointly or separately, that you suffer from an illness or injury that is likely to result in death within 24 months of the date of signing the certificate.
  • At least one of the registered medical practitioners is a specialist practising in an area related to your illness or injury.
  • The 24-month certification period has not ended.

Contact your super fund to request access to your super due to a terminal medical condition. Your fund must pay your super as a lump sum. There are conditions that must be met for the payment to be tax-free.

Severe financial hardship

You may be able to withdraw some of your super if you are experiencing severe financial hardship. Access on grounds of severe financial hardship is not administered by the ATO. You need to contact your super provider to request access due to severe financial hardship.The minimum amount that can be withdrawn is $1,000 and the maximum is $10,000. If your super balance is less than $1,000 you can withdraw up to your remaining balance after tax.

Temporary incapacity

You may be able to access your super if you are temporarily unable to work, or need to work fewer hours, because of a physical or mental medical condition. This condition of release is generally used to access insurance benefits linked to your super account.

Permanent incapacity

You may be able to access your super if you are permanently incapacitated. This type of super withdrawal is sometimes called a ‘disability super benefit’.

Super balance less than $200.

You may be able to access your super if:

  • your employment is terminated and the balance of your super account is less than $200
  • you have found a ‘lost super’ account with a balance less than $200.

If you do access your super

It’s worth noting that if  you withdraw funds from your super and it doesn’t meet one of the strict early access requirements then it is considered an illegal early access and you will be required to pay the amount back to the super fund and personal penalties will be imposed.

More information about early access circumstances can be found on the early access to super ATO website. If you have any questions regarding your superannuation, please don’t hesitate to contact us at STS Accounting.