Access on compassionate grounds – what you need to know

When you can access your super

There are limited circumstances where you can access your super on compassionate grounds to meet expenses for you or your dependant. Under the law, we have no discretion to vary the conditions under which you can access your super early.

You may be able to have super released on compassionate grounds to meet expenses for:

• medical treatment for you or your dependant
• medical transport for you or your dependant
• modifying your home or vehicle to accommodate special needs arising from your or your dependant's severe disability
• palliative care for your or your dependant's terminal illness
• death, funeral or burial expenses for your dependant
• preventing foreclosure or forced sale of your home.

For more information, see Expenses eligible for release on compassionate grounds.

Applications for the compassionate release of super generally need to be for an unpaid expense, however, if you have borrowed money to pay for the expense, you may be able to access your super to repay the outstanding balance of the borrowed amount.

These circumstances don't include meeting general day-to-day expenses in hardship situations. In these situations, you may be able to access your super, but there are different rules, and you apply directly to your super fund.

When you apply, ensure you attach all the required evidence so your application can be assessed as quickly as possible. Applications that are not accompanied by all the required documentary evidence may be delayed or not approved.

As your application may not be approved, we recommend you wait for the outcome and receive payment from your fund before you book the treatment or services you have applied for.

Things to consider

Accessing your super early will reduce your super balance. This may affect your:

• future retirement income
• income protection insurance
• life and total and permanent disability insurance cover
• family tax benefit
• child support payments.

Make sure you understand your options and the financial impacts of accessing your super before applying. Consider getting financial advice.

You can start with these free services:

• Centrelink's Financial Information ServiceExternal Link can inform and educate you about financial matters.
• ASIC's MoneysmartExternal Link has helpful information about seeking financial advice.

How tax applies

The super you withdraw on compassionate grounds is paid and taxed as a normal super lump sum. For more information, see Tax on super benefits. The tax rate depends on various factors, including your age, your preservation age, and the components of the super lump sum.

Super that is released early will generally count towards your assessable income for income tax purposes. You need to include any taxable amounts in your tax return.

Refund of tax withheld

You may be able to request a refund of any tax withheld from your super lump sum payment if you had a terminal medical condition either:

• at the time of the payment
• within 90 days of receiving the payment.

For information about how to request a refund and the documents you need to provide, see Refund of tax paid on super.

What you need to do before applying for early release

Before you apply for early release of super on compassionate grounds, work through these steps to check what you need to do if you:

• are seeking to access your super to pay for an expense for yourself, you'll need to find out if you're eligible
• are applying to pay for someone else's expenses, there are additional eligibility requirements
• meet the eligibility requirements you'll then need to understand what evidence you need to provide.

Contact your super fund

Before applying to us for compassionate release of your super, you must contact your super fund to:

• confirm they will release your super early on compassionate grounds
• confirm there is sufficient money in your account to cover both the expense and the tax withholding amount (which generally is up to 32% of the amount being withdrawn)
• check if there will be any fees for releasing your super early under compassionate grounds
• understand the implications on any insurance attached to your accounts.

If you're a member of an exempt public sector super scheme, don't apply to us unless your scheme has directed you to. In most cases, you'll need to apply directly to your scheme for early release of super. These schemes are subject to state and territory laws on early release of super.

If you have a self-managed super fund (SMSF), you still need our approval to access your super early under compassionate release of super. Be aware that some advisers claim you can get early access to your super by transferring it into a SMSF. These schemes are illegal and there are heavy penalties if you participate. For more information, see Illegal early access to super.

Eligibility for compassionate release of super

We can only approve a release of your super if you meet all the following conditions:

• Condition 1 – you are or have been a citizen or permanent resident of Australia or New Zealand if
  • You are currently a temporary resident, you can't meet this condition and you're not eligible to apply.
  • You were a temporary resident and are not a current Australian or New Zealand citizen or permanent resident, you can't meet this condition and you're not eligible to apply (but you may be eligible to be paid your super in the form of a Departing Australia superannuation payment).
• Condition 2 – you meet the eligibility requirements of the specific compassionate ground that you’re applying for – see Expenses eligible for release on compassionate grounds.
• Condition 3 – you or your dependants' expense is unpaid or has been paid as a result of you borrowing money that remains outstanding – where you or your dependant have borrowed money to pay the expense
  • You can only apply to repay any outstanding amounts from the amount borrowed.
  • Additional documents will need to be provided as part of your application.
• Condition 4 – you can’t afford to pay part or all of the expense without accessing your super. That is, you can't pay the expense by
  • using your savings
  • selling shares, investments or assets
  • accessing funding through other means (such as the National Disability Insurance Scheme)
  • borrowing money, obtaining a loan, redrawing your mortgage or using credit facilities, but if you then are unable to repay the borrowed amount, you may still be eligible to apply.
• Condition 5 – you provide all required supporting evidence and invoices or quotes, including any documentary evidence required to show you're in a dependant relationship with someone when you're applying to pay an expense for them.

Accessing super to pay expenses for someone else

If you're seeking to access your super to pay an expense for another person, you must have a dependent relationship with that person.

If your relationship meets the requirements of an interdependent or substantially financially dependent relationship, you need to provide evidence of the relationship.

Who is a dependant

A person can be considered your dependant if they meet the criteria for one of the following categories:

• your spouse
• your child
• any other person you are in an interdependent relationship with
• a person who is substantially financially dependent on you.

Read the following information to determine if your relationship meets the relevant criteria and to understand the additional evidence you need to provide.

Applications submitted with incomplete evidence will be delayed or not approved.

Spouse

We define a spouse as someone who is either:

• legally married to you
• a person who is recognised as being in a registered relationship with you under a state or territory law
• not legally married to you but lives with you on a genuine domestic basis in a relationship as a couple.

If you're applying to pay for the expense of your spouse, you're not required to provide any additional evidence with your application.

Child

A child is someone less than 18 years old.

To be considered your dependent, the child must be either your:

• biological child
• adopted child
• stepchild
• child of your spouse
• a child within the meaning of the Family Law Act 1975.

If you're applying to pay for the expense of your child who meets this criteria, you're not required to provide any additional evidence with your application.

If your application is to pay for the expenses of your child who is 18 years or older, you'll need to satisfy that an interdependent relationship or a substantially financial dependent relationship exists between you and your child.

Interdependent

An interdependent relationship is a relationship between 2 people that meets all the following conditions:

• They have a close personal relationship.
• They live together.
• One or both provides financial support to the other.
• One or both provides domestic support and personal care to the other.

You may also be considered to have an interdependent relationship if you have a close personal relationship but live apart temporarily. An example is if one or both of you are:

• temporarily working or studying interstate or overseas
• detained in prison
• receiving care for a physical, intellectual, or psychiatric disability.

Evidence

Once you have read the following information, you may wish to use or print our Interdependent relationship checklist to assist you in collecting the required evidence for your application.

To show that you are in an interdependent relationship with another person, you need to provide:

• documents showing that you both live at the same address or, if you're temporarily living apart, that you normally live together
  • This could be a joint bank statement or a phone or utility bill for example.
  • If you are temporarily living apart, your application needs to explain why.
• evidence of the financial support provided, including bank statements from both people that clearly shows payments to the other person or made on their behalf
• a statutory declaration form detailing all of the circumstances of the relationship between the persons, including (where relevant)
  • duration of your relationship
  • whether or not a sexual relationship exists
  • degree of mutual commitment to a shared life
  • ownership, use and acquisition of property
  • care and support of children
  • public aspects of your relationship
  • degree of emotional support provided to each other
  • degree to which the relationship is one of mere convenience
  • any information that indicates you intend for the relationship to be permanent.

 

Substantially financially dependent

A person is substantially financially dependent on another where one person is unable to meet their normal living expenses without the financial support of the other person. Your application needs to include information and financial documents that show:

• you make regular, continuous, substantial financial payments to, or on behalf of, the other person for a significant period
• these payments cover all or a substantial portion of the person's normal living expenses
• the person would be unable to afford their normal living expenses without these payments (such as groceries, mortgage or rent, transportation costs, utility bills and medical expenses).

Evidence

Once you have read the following information, you may wish to use or print our Financial dependant checklist to assist you in collecting the required evidence for your application.

To prove you're in a substantially financially dependent relationship with another person, you need to provide:

• a written statement or letter (this can include a statutory declaration from yourself or the dependant that includes the following information about the relationship
  • how regularly financial support is provided
  • value of financial support provided
  • duration of the financially dependent relationship
  • whether the other person's normal living expenses are financed by these payments
  • level of reliance the other person has on the financial support provided
  • whether the other person has any other sources of income and, if so, the value
  • any other information that supports the relationship
• financial documents that
  • support the written statement or letter and clearly demonstrate that you financially support the other person to meet their normal living expenses (such as groceries, mortgage payments or rent, transportation costs, utility bills, medical expenses) on a regular basis for a significant period
  • show the other person couldn't meet their living expenses without your financial support.

Financial documents that can demonstrate the financial support include:

• your and the other person's bank statements for the same period, showing
  • transfer and receipt of money to, or on behalf of, the other person
  • how the money is used to fund the other person's normal living expenses
  • any income the other person is receiving
• receipts for expenses you have paid on behalf of the other person
• documents detailing any employment payments or government help provided to the dependant that show any other income they have.

Accessing super to repay borrowed amounts for eligible expenses

If you or your dependant paid for an eligible expense by borrowing money and you don't have the financial capacity to repay the amount, you may be able to access some of your super to repay the outstanding balance of the borrowed amount.

Borrowed amount refers to any debt that was incurred to pay for an eligible expense, where a balance remains outstanding and has a requirement to be repaid. Examples of financial arrangements that may be eligible are:

• amounts borrowed from family or friends
• amounts loaned by a commercial lender (banks or other lenders)
• credit card debts
• amounts owed to 'pay later' services.

As part of your application you need to provide us with the terms of the arrangement.

Eligibility criteria

To access your super on compassionate grounds to repay borrowed amounts, all of the following conditions need to be met:

• Condition 1 – You or your dependant meet all the eligibility conditions to access your super on compassionate grounds. That is:
  • the expense is an eligible expense
  • you have the necessary documents to support your eligibility for the expense.
• Condition 2 – You or your dependant borrowed money for the purposes of paying for the expense.
• Condition 3 – The borrowed amount was used to pay for the expense.
• Condition 4 – The borrowed amount remains outstanding in part or full.
• Condition 5 – You don’t have the financial capacity to repay the outstanding balance of the borrowed amount in accordance with the terms you agreed to (you need to consider options to repay some or all of the borrowed amount before applying).

Where these conditions are met and you can provide the required supporting documents, we can consider approving a release to repay the outstanding balance of the borrowed amount that was used to pay for the eligible expense.

Amounts that are not eligible

Any interest or administrative fees, including penalties charged on the borrowed amount can't be considered as part of a release on compassionate grounds.

Evidence

In addition to the documents required to support your or your dependant's eligibility for the expense, you need to provide additional documents to support the borrowed amount. The documents required will differ depending on whether you or your dependant:

• borrowed money from family or friends
• got a loan from a commercial lender
• used other lenders or financial arrangements.

Amounts borrowed from family or friends

If you or your dependant borrowed money from family or a friend, your application must include the following additional documents and information to support the borrowed amounts.

If you don't provide the right evidence your application will be delayed or not be approved. The following information tells you what these documents must include.

Once you have read the following information, you may wish to use or print our Repaying amounts borrowed from family or friends checklist to assist you in collecting the required evidence for your application. You must provide:

• A paid invoice, receipt or bank statement that shows the payment of the expense, including the
  • date of payment
  • method of payment (electronic payment, credit card, cash)
  • amount paid.

All documents need to show who they were issued to. Where you are providing bank statements, you need to ensure that the account holder's name and statement period are visible.

You must provide a statutory declaration from yourself or your dependant that must include:

• the amount borrowed, lender's name, how it was paid, and the date received
• intended use of borrowed amount
• any terms of repayment that were agreed to (this needs to include why the repayment terms can't be met)
• the outstanding balance of the borrowed amount that you aren't able to repay by other means.

You must provide a statutory declaration from the lender that must include:

• the amount loaned, who it was for, how it was paid, and the date paid
• intended use of the loaned amount
• any terms and conditions for the amount loaned (including any information about repayments requirements and the charging of interest or fees)
• the outstanding balance of the loaned amount.

If you entered into any written contracts or agreements that detail the terms of the arrangement, you need to include these documents in your application.

Loans from a commercial lender

If you or your dependant obtained a loan from a commercial lender, your application needs to include these additional documents to support the loan:

• an invoice or quote for the expense
• proof the expense has been paid
• financial documents showing the payment of amounts between yourself or your dependant and the lender
• a loan contract
• a statutory declaration from yourself or your dependant.

If you don't provide the right evidence your application will be delayed or not be approved. The following information tells you what these documents need to include.

Invoices, receipts and bank statements

Your application must also include:

• a paid invoice, receipt or bank statement that shows the payment of the expense, including the
  • date of payment
  • method of payment (electronic payment, credit card or cash)
  • amount paid
  • payer's details
• The loan statement that shows
  • the opening balance of the loan
  • the date on which the loan was provided
  • payment of the amount to you or your dependant's bank account
  • any repayments that have been made
  • any interest or fees that have been charged
  • the account owner's name
• your or your dependant's bank statement that shows
  • the incoming payment from the loan account to your personal account, including payment date
  • payments to the provider, including the payment dates
  • the account owner's name.

Note: Where you are providing bank statements, you need to ensure that the account holder's name and statement period are visible.

Statutory declaration and loan contract

Your application must also include:

• the loan contract with the terms and conditions of the loan (including any information about repayment requirements and the charging of interest and fees)
• a statutory declaration from yourself or your dependant that includes
  • the amount borrowed, lender's name and the date received
  • the intended use of the borrowed amount
  • the outstanding balance of the borrowed amount that you aren't able to repay by other means
  • details of the changes in your or your dependant's circumstances since obtaining the loan that have resulted in the repayment terms not being met
  • details of other funding options (see condition 4) you have considered and why they aren't available.

Other lenders or financial arrangements

If you or your dependant has borrowed money or incurred a debt to pay for an eligible expense from any other entity, your application needs to include these documents to support this arrangement:

• an invoice or quote for the expense
• proof the expense has been paid
• financial documents showing the payment of amounts between yourself or your dependant and the lender
• a statutory declaration from yourself or your dependant.

If you don't provide the right evidence your application will be delayed or not be approved. The following information tells you what these documents need to include.

Paid by credit card

Where you paid for your expense via a credit card, we can only approve the expense amount less any repayments made to the credit card after the payment date of the expense. If your total repayments exceed the cost of the expense, we will be unable to approve any amounts for release.

Due to this your application will need to include statements showing all transactions since the payment of the expense.

Invoices, receipts and bank statements

Your application must also include:

• an invoice or quote that includes an itemised list of expenses and their cost
• a paid invoice, receipt or bank statement that shows the payment of the expense, with the:
  • date of payment
  • method of payment (electronic payment, credit card, cash)
  • amount paid
  • payer's details.

Where you are providing bank statements, you need to ensure that the account holder's name and statement period are visible.

Financial documents and statutory declaration

Your application must also include:

• financial documents that include details of the borrowed amount or debt incurred (including bank statements, loan contracts, written agreement, loan statements or repayment schedules), with the following information
  • receipt of the borrowed amounts or debt incurred, including the date
  • payments to the provider (or direct payment to the provider from the lender on your or your dependant's behalf), including the date and the amount paid
  • any terms and conditions regarding the amount (including any information about repayments requirements and the charging of interest or fees)
  • intended use of the borrowed amount or debt incurred (including details of any interest or fees that have been charged and repayments that have been made)
• a statutory declaration from yourself or your dependant with
  • the amount borrowed or debt incurred, lender's name and the date received
  • intended use of the borrowed amount or debt incurred
  • the outstanding balance of the borrowed amount that you aren't able to repay by other means
  • details of why you can't make repayments as per the agreed terms
  • details of other funding options (see condition 4) you have considered and why they aren't available.

Evidence requirements

You must provide evidence relevant to the specific ground on which you're applying for compassionate release and where relevant to show that someone is your dependant.

If you don't provide all required evidence your application will be delayed or not be approved.

The following requirements apply to all the evidence and information that you provide.

If you submit your application online, you need digital copies of the required evidence:

• We accept photos of documents – supported file formats are PDF, gif, jpeg and png.
• We don't accept screen shots of text messages or emails.
• Our system will not accept more than 20 attachments and 10 MB per attachment.

If you submit a paper application, you need to ensure you provide copies of your documents – don't provide original documents as these will not be returned.

Where your evidence, including quotes and invoices or registered medical practitioner and specialist reports, are written in a language other than English:

• you will need to have it translated
• the translator must be accredited by the National Accreditation Authority for Translators and Interpreters (NAATIExternal Link).

Don't include images of a disturbing nature to support your application as they're not necessary to assess your application.

We may undertake checks with your providers to validate evidence provided in your application, including where missing or additional information is required, including contacting service providers to validate invoices, quotes or medical reports.

When providing financial statements (for example, from a lender) to support your application, you need to ensure these are on the provider's letterhead and include the account holder’s name and statement period.

Quotes and invoices

Under each ground we also need to see evidence of expenses that show the amounts you’re seeking to release from your super account. This can include an itemised quote or an invoice that shows the amount and a description of each component.

Invoices and quotes must:

• include an itemised list of expenses and their respective costs – lump sum quotes or invoices won't be accepted
• include the provider's name and contact details
• be on the provider's letterhead
• be addressed to you, or your dependant if you are applying for them
• be dated
  • no more than 6 months old for unpaid quotes
  • no more than 30 days old for unpaid invoices
• be converted to Australian dollars if they're in a foreign currency, at the exchange rate at the time you apply – if we approve your application, we won't recalculate the conversion at the time of approval.

If the quote or invoice has been paid by a borrowed amount, there are no timeframe requirements for the invoice or quote.

Statutory declarations

Some applications require statutory declarations to be provided as a supporting document. This can be any valid statutory declaration form (Commonwealth, State or Territory), so long as it meets the requirements of the Act it is made under.

You can make a Commonwealth statutory declaration via the paper form or through your myGov account. To access the Commonwealth statutory declaration form and for guidance on completing this form, see How to complete a statutory declarationExternal Link.