Early access to superannuation

Last updated 19 March 2009

Can I access my superannuation benefits?

Your superannuation is generally preserved until you retire from the workforce. However, subject to the rules of your superannuation fund, early release of preserved superannuation benefits is permitted in some circumstances. These are discussed below.

How do I qualify to access my superannuation?

In order to qualify for early access to superannuation, the trustee of your superannuation fund must be satisfied that you meet one of the tests.

1. Severe financial hardship

   To be eligible under this test your superannuation fund must be satisfied that:

   1. you have received Commonwealth income support payments for a continuous period of 26 weeks;
   2. you are receiving the payments on the date you obtain a letter stating this; and
   3. you are unable to meet reasonable and immediate family living expenses.

   If you satisfy this test, you may obtain between $1,000 and $10,000 in any one 12 month period. If you have less than $1,000 you may access the whole amount.

2. Letter from Centrelink or the Department of Veteran Affairs

   Centrelink or the Department of Veteran Affairs provide standard letters which verify that you have received the appropriate payments for the required time.

   Not all social security or family support payments qualify as Commonwealth income support payments. In general, an income support supplement, service pension, social security pension or a social security benefit other than Austudy payment or Youth Allowance should qualify. Centrelink can tell you whether your payments comply.

3. Unable to meet family living expenses

   If you have received support payments for the required time, you must then show that you are 'unable to meet reasonable and immediate family living expenses'. Guidelines released by the Australian Prudential Regulation Authority state that an applicant must show that there is a gap between their personal income and expenses which are associated with everyday living which cannot be covered reasonably by selling the person's assets (other than the family home).

   If you have a family, you must show that the combined income of your family does not meet your family's everyday living expenses. Note that business expenses are generally not considered to be family expenses. The expenses that you are unable to pay must be 'immediate'. This means that they must be due and payable. For example, only the minimum payment on a credit card is considered to be immediate.

   Some expenses that will be payable very soon, and that are important, such as urgent dental or medical treatment, will also be considered to be immediate.

   Ultimately, whether you are unable to meet your family living expenses is a decision for the trustee of your superannuation fund. Most superannuation funds have a form and statutory declaration that they will require you to fill in to show your financial circumstances.

4. Aged over preservation age

   An alternative test exists if you:

   1. have reached preservation age plus 39 weeks;
   2. have been receiving Commonwealth income support payments (as described above) for a cumulative period of 39 weeks since reaching that age; and
   3. are unemployed or employed for less than 10 hours per week.

   If you satisfy this test there is no need for the trustee to enquire into your financial circumstances and there is no limit to the amount of superannuation that may be released.

5. Other circumstances

   There are some other circumstances where you will be able to access your superannuation early. These include if you have certain medical expenses (including if you need modifications to your home or vehicle due to a severe disability) or need to make mortgage repayments to prevent your mortgagee from selling your home. You will only be able to access your superannuation on these grounds if, without some or all of your superannuation, you could not afford to meet the expense.

   Applications on these grounds must be made to APRA.

   Temporary or permanent disability may also be grounds for seeking access to superannuation in some circumstances. You may also access your superannuation if your preserved benefit is less than $200 if your employment has been terminated.

What if I don't know where my superannuation is?

The Australian Taxation Office (ATO) keeps a Lost Members Register. This can be searched online using the ATO's SuperSeeker, or by calling 13 28 65.