Last amended: 13 August 2013
The superannuation law [2] allows release of preserved superannuation benefit [2] when the person has reached preservation age [2] and the person either:
Early release of benefits on the grounds of severe financial hardship is permitted when:
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 [2] is held in the Superannuation Holding Accounts Reserve [2].
If a person's age is... |
They are in severe financial hardship if they received an income support payment... |
And withdrawals are ... |
less than 55 years and 39 weeks |
for a continuous period of 26 weeks immediately prior to application. Pensioners also need to satisfy the superannuation fund trustee that they are unable to meet reasonable and immediate family living expenses |
restricted to one withdrawal and a maximum $10,000 each twelve months. |
55 years and 39 weeks or more |
People of this age who do not meet these requirements will also be able to access their superannuation if they meet the requirements for people less than 55 years and 39 weeks. |
not restricted. |
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.
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 [2]. 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.
Pensioners must notify DVA if any benefits are released, as this may affect their income support payments.
More → [3]
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.
The superannuation law includes:
Section 5J(1) of the VEA [6] defines a superannuation benefit, in relation to a person, as a benefit arising directly or indirectly from amounts contributed (whether by the person or by any other person) to a superannuation fund in respect of the person.
Preservation age is the age at which a person may be able to gain access to preserved benefits held in approved deposit funds and superannuation.
From 2015 to 2025, the preservation age will gradually increase to sixty years for people born after 1 July 1960. Specifically:
For a person born... | preservation age is... |
before 1 July 1960 | 55 years old |
during the year 1 July 1960 to 30 June 1961 | 56 years old |
during the year 1 July 1961 to 30 June 1962 | 57 years old |
during the year 1 July 1962 to 30 June 1963 | 58 years old |
during the year 1 July 1963 to 30 June 1964 | 59 years old |
after 30 June 1964 | 60 years old. |
To access preserved benefits on reaching preservation age, an income support recipient must also satisfy one of the following:
The person must also meet the conditions of the particular fund's governing rules.
Legislative reference: Regulation 6.01 Supernnuation Industry (Supervision) Regulations 1994
A superannuation fund is defined in the VEA as being:
Section 5J(1) of the VEA [6] defines a superannuation benefit, in relation to a person, as a benefit arising directly or indirectly from amounts contributed (whether by the person or by any other person) to a superannuation fund in respect of the person.
The superannuation holding accounts reserve is the fund in which small accounts administered by the Australian Taxation Office are held.
The Department of Veterans' Affairs.
Links
[1] https://clik.dva.gov.au/user/login?destination=node/16358%23comment-form
[2] https://clik.dva.gov.au/%23
[3] https://clik.dva.gov.au/book/export/html/16358#tgt-cspol_part10_ftn597
[4] https://clik.dva.gov.au/compensation-and-support-policy-library/part-12-compliance-and-obligations/121-recipient-obligations
[5] https://clik.dva.gov.au/book/export/html/16358#ref-cspol_part10_ftn597
[6] http://clik.dva.gov.au/legislation-library
[7] http://clik.dva.gov.au/glossary/foreign-superannuation-fund