Want to withdraw from your super before you retire? Find out when you can. 

There are conditions of release that allow early access to your super.

There are strict rules around when you can access your super, and mostly these ‘conditions of release’ are linked to your age, and when you retire.

There are, however, less common conditions of release that allow early access to super if you need it. Below is a brief summary of these.  

Access on compassionate grounds

You may be allowed to withdraw some of your super on compassionate grounds. Compassionate grounds include needing money to pay for:

• medical treatment and medical transport for you or your dependant
• palliative care for you or your dependant
• making a payment on a home loan or council rates so you don’t lose your home
• accommodating a disability for you or your dependant
• expenses associated with the death, funeral or burial of your dependant.

While there is no fixed limit on the amount of super you can access under compassionate grounds, you are only entitled to withdraw what you reasonably need to cover the unpaid expense. The amount you withdraw is taxed as a super lump sum, and the tax rate varies depending on your age and a number of other factors.

Access due to severe financial hardship

You may be able to withdraw some of your super if you meet both of these conditions:

• You have received eligible government income support payments continuously for 26 weeks.
• You are not able to meet reasonable and immediate family living expenses.

If you withdraw super due to severe financial hardship, the money you withdraw is taxed as a super lump sum.

The minimum amount that can be withdrawn is $1,000 and the maximum amount is $10,000. If your super balance is less than $1,000 you can withdraw up to your remaining balance after tax.

You can only make one withdrawal in any 12-month period.

Access due to a terminal medical condition

You may be able to access your super if you have a terminal medical condition. A terminal medical condition exists if all these conditions are met:

• Two registered medical practitioners have certified, jointly or separately, that you suffer from an illness or injury that is likely to result in death within 24 months of the date of signing the certificate.
• At least one of the registered medical practitioners is a specialist practising in an area related to your illness or injury.
• The 24-month certification period has not ended.

The payment is tax-free if you withdraw it within 24 months of certification.

Access due to temporary incapacity

You may be able to access your super if you are temporarily unable to work, or need to work less hours, because of a physical or mental medical condition.

This condition of release is generally used to access insurance benefits linked to your super account.

You will receive the super in regular payments (income stream) over the time you are unable to work. A super withdrawal due to temporary incapacity is taxed as a super income stream.

There are no special tax rates for a super withdrawal due to temporary incapacity.

Access due to permanent incapacity

You may be able to access your super if you are permanently incapacitated. This type of super withdrawal is sometimes called a ‘disability super benefit’.

Your fund must be satisfied that you have a permanent physical or mental medical condition that is likely to stop you from ever working again in a job you were qualified to do by education, training or experience.

You may still be eligible to withdraw your super when you meet the above criteria but are undertaking other work, such as light duties in a different position or casual work in a different field.

You can receive the super as either a lump sum or as regular payments (income stream).

A super withdrawal due to permanent incapacity is subject to different tax components. For you to receive concessional tax treatment, your permanent incapacity must be certified by at least two medical practitioners.

Lost member benefits under $200

You may be able to access your super if:

• your employment is terminated and the balance of your super account is less than $200
• you have found a ‘lost super’ account with a balance of less than $200.

No tax is payable when accessing super accounts with a balance of less than $200.

The First Home Super Saver Scheme (FHSSS)

To help you save for your first home, you can apply to release voluntary concessional (before-tax) and voluntary non-concessional (after-tax) contributions you have made to your super fund since 1 July 2017. You must meet the eligibility requirements to apply for the release of these amounts.

You can apply to have a maximum of $15,000 of your voluntary contributions from any one financial year included in your eligible contributions to be released under the first home super saver scheme, up to a total of $30,000 contributions across all years.

Superannuation guarantee contributions made by your employer and spouse contributions cannot be released under the FHSSS scheme.

Temporary residents permanently leaving Australia

When you leave Australia, you may be eligible to claim that super back as a Departing Australia superannuation payment (DASP). There are requirements you will need to meet and payment is taxed before you receive it.

Next Steps

• If you feel you meet the conditions for early release, speak to your super fund to confirm eligibility.
• Before you make any decisions about withdrawing funds from your super, consider seeking qualified and professional financial advice.