What Is Compassionate Release of Super?

Generally speaking, superannuation is only available to access or draw from once you reach your preservation age. However, limited and highly conditional options are available for some of your super to be released to you in certain circumstances.

The Australian Taxation Office (ATO) offers a compassionate release pathway for individuals facing specific circumstances that warrant early access to their superannuation savings. 

Accessing superannuation funds on compassionate grounds can provide much-needed relief and support in times of financial hardship or medical necessity. 

What is Compassionate Release of Super?

Compassionate release of super allows individuals to access their superannuation funds before reaching preservation age in certain circumstances deemed by the ATO as compassionate grounds. 

These circumstances typically include medical treatment, medical transport, palliative care, or mortgage assistance to prevent foreclosure on the family home.

Eligibility Criteria

To be eligible for compassionate release of super, individuals must meet strict eligibility criteria set out by the ATO. This includes demonstrating that the requested funds are needed to address a specific compassionate circumstance and that no alternative financial assistance is available. Additionally, applicants must provide supporting documentation, such as medical certificates or financial statements, to substantiate their claim.

How to Apply

Applying for compassionate release of super involves several steps, outlined by the ATO. Applicants must first obtain and complete the “Application for early release of superannuation” form available on the ATO website. This form requires detailed information about the compassionate grounds for the request, along with supporting documentation.

Supporting Documentation

Supporting documentation is a crucial aspect of the compassionate release application process. 

Depending on the nature of the compassionate circumstance, applicants may need to provide medical certificates, specialist reports, treatment plans, or financial statements demonstrating financial hardship. 

It’s essential to ensure that all documentation is accurate, up-to-date, and clearly supports the compassionate grounds for the release of super.

ATO Assessment

Once the application and supporting documentation are submitted, the ATO will assess the request for compassionate release of super. 

This assessment involves reviewing the applicant’s circumstances, verifying the authenticity of the documentation provided, and determining whether the criteria for compassionate grounds are met. The ATO aims to process compassionate release applications promptly to provide timely assistance to eligible individuals.

Compassionate release of super may offer a lifeline to individuals facing significant financial or medical challenges, providing access to much-needed funds during times of hardship.

Understanding the eligibility criteria, documentation requirements, and application process is essential for those considering applying for compassionate release of super. 

By following the ATO guidelines and providing comprehensive documentation, eligible individuals can navigate the process effectively and access the support they need in times of need. 

Interested in learning more about the compassionate release of superannuation or more about other conditional releases? Speak with a licensed professional adviser before making any decisions.

IMPORTANT NOTICE

This blog post contains general information only and has been prepared by Allworths without reference to your objectives, financial situation or needs. Allworths cannot guarantee the accuracy, completeness or timeliness of the information contained here. By making this information available to you, we are not providing professional advice or recommendations. Before acting on any of the information contained here, you should seek professional advice.