Financial Advisor - Brisbane - Australia - A Clear Direction Financial Planning - Accessing superannuation assets before reaching your preservation age

07 3310 8742

scottk@acleardirection.com.au

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.

First a quick reminder, the preservation age is currently 55 but will be increased to 60 on a phased in basis:

For a person ...
Before 1 July 1960                     55
1 July 1960 - 30 June 1961         56
1 July 1961 - 30 June 1962         57
1 July 1962 - 30 June 1963         58
1 July 1963 - 30 June 1964         59
After 30 June 1964                    60

Before reaching your relevant preservation age you may be able to access your superannuation under one of the following conditions of release:

- 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

A Clear Direction Financial Planning