Early Release of Superannuation Benefits

Last amended: 13 August 2013

Release of benefits

The superannuation law allows release of preserved superannuation benefit when the person has reached preservation age and the person either:

• has retired from gainful employment and

• has reached age 65; or
• is permanently incapacitated, or

• is in severe financial hardship, or
• can obtain release on compassionate grounds.

Early release of benefits due to severe financial hardship

Early release of benefits on the grounds of severe financial hardship is permitted when:

• a person has met the income support payment requirements,
• the superannuation fund trustee considers they are unable to meet reasonable and immediate family living expenses,
• a person is not gainfully employed on a part-time or full-time basis, and
• the rules of the superannuation fund permit release.

Severe financial hardship - income support requirements

The following table shows the conditions to be met for people who request the early release of their superannuation benefits to be classed as being in severe financial hardship. Different conditions apply where the superannuation benefit is held in the Superannuation Holding Accounts Reserve.

Superannuation Holding Accounts Reserve – income support requirements

The qualifying period of income support for superannuation investments in superannuation holding accounts reserve is fifty two weeks (continuous) for people aged less than 55 years and 39 weeks, and at least thirty nine weeks (cumulative) for people aged 55 years and 39 weeks or more.

DVA's role in the early release of benefits

Applications for release of superannuation benefits on the grounds of severe hardship are made to the person's superannuation fund, and must be submitted with a letter confirming the period of the person's income support payments received from DVA. DVA does not have any role in whether all of the conditions for early release of benefits have been met. DVA's only role is to supply, on request from a person, confirmation that the pensioner has received income support payments for the required period.

Notification of early release of benefits

Pensioners must notify DVA if any benefits are released, as this may affect their income support payments.    

People who do not meet the severe financial hardship requirements

There are very limited compassionate grounds that allow a person who does not meet the income support requirements to gain access to their superannuation benefits. These include a requirement to pay for medical treatment or medical transport, mortgage assistance, modifications to a home and/or motor vehicle in the case of a severe disability, care for a terminal medical condition, or for funeral assistance. The Department of Human Services considers applications on compassionate grounds, and a person's superannuation fund trustee or retirement savings account provider can provide advice to pensioners.