A guide to accessing your super early

Need to access your superannuation early but not sure if you qualify? 

There are specific circumstances under which you can tap into your super before retirement age. From financial hardship to medical conditions, understanding the criteria is key.

Let’s dive into the details.

Super is meant for retirement, and the government doesn't take early release lightly. That’s why the ability to access your super early is usually reserved for severe financial or medical situations, and you’ll have to provide evidence to support your claim.

That said, here are the circumstances where you might qualify:

This is the broadest category by far and covers a wide variety of urgent personal and family situations where you may need early access to your super to meet expenses for yourself or your dependents. These include:

• Medical treatment and/or transport
• Home or vehicle modifications related to disability
• Palliative care 
• Death, funeral or burial expenses for your dependant
• Mortgage repayments to prevent foreclosure or forced sale of your home

For more information, you can check out the ATO’s detailed list of eligible expenses.

What it’s for: Unpaid expenses directly related to these situations, although you may be able to withdraw funds to repay money you've borrowed for these costs. In other words, this isn’t for day-to-day living expenses related to the hardship.

Eligibility criteria: Differs based on the situation

How much can you get? Limited to what you reasonably need to make the unpaid expense.

Who manages this: The Australian Taxation Office (ATO)

How to apply:

Each case is different and requires specific documentation as evidence. You can visit the ATO website for detailed information on eligibility and the application process. Generally, you will need to:

1. Check your eligibility. Ensure you meet the criteria for compassionate grounds by reviewing the ATO guidelines.
2. Gather required documents. Collect all necessary documents that support your claim.

Submit your application. Use the ATO’s online services through your myGov account to complete and submit your application.

This is specifically for those who are struggling to meet basic living expenses. To qualify for early access to your super under severe financial hardship, you generally need to have been receiving government income support payments for a specific period, which depends on your age.

What it’s for: Covering essential living expenses such as rent or mortgage payments, utility bills, medical costs and daily living expenses.

Eligibility criteria:

If under the preservation age plus 39 weeks: You’ve been receiving government income support payments continuously for at least 26 weeks and you’re unable to meet reasonable and immediate family living expenses. 

If over the preservation age plus 39 weeks: You’ve been receiving government income support payments continuously for at least 39 weeks after you’ve reached your preservation age, and you were not gainfully employed at the time of applying.

How much can you get? 

If under the preservation age plus 39 weeks: $1,000 - $10,000

If over the preservation age plus 39 weeks: No restrictions

Who manages this: Your superannuation fund

How to apply: Visit your super fund’s website for detailed information on the application process and required documentation.

If you’ve been diagnosed with a terminal illness that will likely result in death within two years, you’ll typically be eligible to withdraw all your super, so you can enjoy the fruits of your labour before you pass.

What it’s for: You can use the funds for any purpose, including medical treatment, living expenses or fulfilling personal wishes.

Eligibility criteria: Certification from two medical specialists that you suffer from illness or injury that is likely to result in death within 24 months.

How much can you get? No restrictions

Who manages this: Your superannuation fund

How to apply: Visit your super fund’s website for detailed information on the application process and required documentation.

If you’re temporarily unable to work due to a physical or mental condition, you may be able to access your super to help cover living expenses during your recovery period. This provision is designed to provide financial support while you are unable to earn an income.

What it’s for: Covering living expenses and medical costs while you are temporarily incapacitated and unable to work.

Eligibility criteria: You must be temporarily unable to work due to a physical or mental condition, as certified by a medical practitioner.

How much can you get? The amount you can access is typically determined by your superannuation fund’s insurance policy and is usually paid as regular income payments (income stream) rather than a lump sum.

Who manages this: Your superannuation fund

How to apply: Visit your super fund’s website for detailed information on the application process and required documentation.

If you are permanently unable to work due to a severe physical or mental condition, you may be eligible to access your super early. This is often referred to as a 'disability super benefit'.

What it’s for: Covering living expenses, medical costs, and other necessary expenses when you are permanently unable to work.

Eligibility criteria: You must have a permanent physical or mental medical condition that prevents you from ever working again in a job for which you are qualified by education, training, or experience. You may still qualify even if you are doing light duties or casual work in a different field.

How much can you get? There are no restrictions on the amount you can access. You can choose to receive your super as a lump sum or as regular income payments.

Who manages this: Your superannuation fund

How to apply: Visit your super fund’s website for detailed information on the application process and required documentation.

The amount of super you can access early depends entirely on your unique situation.

For example, if you're dealing with a terminal medical condition, you might be able to access your entire super balance. If you need to withdraw super on compassionate grounds, it will typically cover just the cost of a specific expense. For severe financial hardship, most people will be able to access up to $10,000 in a given year.

In short, the amount you can take out of your super fund early is based on your particular circumstances and the reason you need the money.

While we can't give you the exact steps, as the process varies based on your situation and super fund, we can provide some general guidelines. Typically, you’ll need to prove your eligibility, gather the necessary documents, and submit an application through your super fund or the Australian Taxation Office (ATO).

For detailed information, visit your super fund’s website or the ATO website. They’ll provide you with specific guidelines to help you navigate the process smoothly.

For early release due to compassionate reasons, the ATO will instruct your super fund to send the money directly to the provider offering the service you need help paying for, or to the lender who lent you money for that service.

For all other reasons, your super fund will send the funds to your nominated bank account, either as a lump sum or an income stream depending on the circumstances of the claim. You should receive the lump sum or the first income instalment within 1-3 business days after your claim has been approved. Ongoing instalments are usually paid monthly. However, it’s worth checking with your super fund, as the process may differ between funds.

Yes, you may have to pay tax if you withdraw your super early, and the amount of tax depends on your specific situation. For detailed information on tax rates and concessions, visit the Australian Taxation Office (ATO) website or consult with a financial advisor.