To withdraw super early, you generally must meet specific eligibility criteria as superannuation is primarily designed to fund retirement. Early withdrawal can be allowed under certain conditions, including:
- Severe financial hardship: If you have been receiving eligible Commonwealth income support payments for at least 26 consecutive weeks and cannot meet immediate living expenses, you may apply for early access. You typically need to fill out a financial hardship form from your super fund.
- Compassionate grounds: This includes needing funds for medical treatment, palliative care, modifications for severe disability, to prevent foreclosure on a home, funeral expenses, or other serious needs. Applications for compassionate release are made directly through the Australian Taxation Office (ATO), and if approved, your super fund is authorized to release the funds.
- Terminal medical conditions or permanent incapacity: If diagnosed, you may access your super early, and possibly also claim any insurance within your super.
- Permanent departure from Australia for temporary visa holders.
- Having less than $200 in your super fund.
To apply for early release on compassionate grounds, you submit an application to the ATO via myGov. For financial hardship, you apply directly to your super fund with evidence of eligibility. Early withdrawals under 60 years may be taxed, generally between 17% and 22%. There are risks and potential consequences of accessing your super early, including reduced retirement savings and possible tax impacts, so seeking professional financial advice before proceeding is highly recommended.
If more details on the process or specific forms are needed, or if there are questions about eligibility or tax implications, those can be addressed next.
