Accessing superannuation assets before reaching your preservation age
Recently I was asked under what conditions could you access some or all of your superannuation funds before reaching your preservation age.
- Permanent incapacity
- Permanent departure from Australia in limited circumstances
- Severe financial hardship
- Compassionate grounds
- Temporary incapacity
The two conditions that need further explanation are financial hardship and on compassionate grounds.
To be eligible under the financial hardship conditions a person needs to have received, and still be receiving at the time of application Commonwealth income support payments for a continuous period of 26 weeks and the trustee of the fund must be satisfied that the person is unable to meet reasonable and immediate living expenses. The maximum payment is $10,000.
Payments may also be able to be made on compassionate grounds including:
- paying for medical treatment of medical transport for the person or dependant
- enabling the person to make a payment on a loan to prevent foreclosure of a mortgage on the person's principal residence
- paying expenses associated with a dependant's palliative care in the case of impending death.
Updated 17th March 2009