Early access to super

If you're diagnosed with a terminal illness you may be eligible to withdraw your super account balance. Get more information here or contact us on 13 13 36 for more assistance. You can email your documents to cfsearlyrelease@cfs.com.au.

If you have been diagnosed as suffering a permanently incapacity and are unable to work again, you may be eligible to withdraw your super account balance. Get more information here or contact us on 13 13 36 for more assistance. You can email your documents to cfsearlyrelease@cfs.com.au.

If you need to pay for any of the below specified expenses but do not have the financial capacity to do so, subject to ATO approval, you may be eligible to withdraw the amount required from your super account balance.

• medical treatment or medical transport for you or your dependant to treat a life-threatening illness or injury, or to alleviate an acute or chronic condition
• palliative care for you or your dependant
• making a payment on a home loan or council rates to avoid foreclosure on a home mortgage
• modifying your home or vehicle or buying disability aids to cater for the severe disability of you or your dependant
• expenses associated with the death, funeral or burial of your dependant.

You can read more about the eligibility criteria on the ATO website.

How much can you withdraw?

The ATO will determine how much money can be released from your super based on your specific circumstances and the evidence you supply to support your application. 

How to apply for early release of super on compassionate grounds

1. Complete the ATO application form and collect evidence to support your application. This information page on the ATO website explains how to complete your application and what to expect after you submit it.
   
   
2. Wait for the ATO’s response
   The ATO will assess your application and will normally let you know within 14 days (or 28 days for a paper application) whether your application was approved. They may contact you during this time if they need more information.
   
   You’ll receive a letter and a phone call or SMS to let you know the outcome.
   
   
3. Ask us to make a payment from your super
   If the ATO approves your request, the next step is to complete our Compassionate Grounds Application Form so we can release your super.
   
   You can send us the form by post or submit it via e-Post after logging into our online portal, you can also email the form to cfsearlyrelease@cfs.com.au. We’ll also need a certified copy of your photo ID (Driver’s licence or passport). 
   
   
4. Receive your payment
   Once we’ve reviewed and approved your application, we’ll make the payment to the bank account you nominate on the form. Payments take 3-5 business days to be received to the nominated bank account once processed.
   
   If you request to withdraw your entire super balance, we’ll close your account and cancel any insurance cover you have for that account. If there’s still money left in your super, your account will remain open and your insurance cover will continue. 

If you find yourself in a situation where you’re unable to meet your reasonable and immediate family living expenses, you may be eligible to access some of your super if you have been receiving an eligible income support payment from Centrelink for a required period. 

As your super fund, we’re authorised to approve an early release of your super for financial hardship reasons if you meet specific criteria. 

How much can you withdraw?

There are two ways that you can qualify for financial hardship. The amount you can release from super under this provision will depend on which test you satisfy.

Test 1:
You can apply for a single lump sum payment of up to $10,000 in a 12-month period. Generally, the minimum withdrawal amount is $1,000 unless you have less than $1,000 in your super account, in which case you can withdraw it all.

To qualify, you must: 

• Currently receive eligible Commonwealth income support payments
• Have been receiving these payments for the last 26 consecutive weeks
• Be unable to meet your immediate family living expenses


Test 2:
You can apply to withdraw as much as you want from your super if you:

• Have reached age 60 plus 39 weeks 
• Have received eligible Commonwealth income support payments for a total of at least 39 weeks after reaching age 60
• Haven’t been employed part-time or full-time in that period for 10 or more hours each week.

What are eligible income support payments?

Income support payments include:

• Age Pension
• Carer Payment
• Disability Support Pension
• JobSeeker Payment
• Parenting Payment
• Special Benefit
• Farm Household Allowance
• DVA Income Support Supplement
• DVA Service Pension

How to apply for early release of super for financial hardship

1. Call us
   Before you do anything else, please call us on 13 13 36 so we can help you determine whether you may be eligible to access some of your super. We’ll discuss your options and assist with the next steps. 
   
   
2. Download and complete our application form
   If you’re eligible to apply to access some of you super, please download and complete our Financial Hardship Application form. You can send us the form by post, submit it via e-Post after logging into our online portal, or email the form to cfsearlyrelease@cfs.com.au. We’ll also need a certified copy of your photo ID (Driver’s licence or passport).
   
   
3. Receive your payment
   Once we’ve reviewed and approved your application, we’ll make the payment to the bank account you nominate on the form. Payments take 3-5 business days to be received to the nominated bank account once processed.
   
   If you request to withdraw your entire super balance, we’ll close your account and cancel any insurance cover you have for that account. If there’s still money left in your super, your account will remain open and your insurance cover will continue.

If you've been making voluntary contributions toward buying your first home, the First Home Super Saver Scheme lets you release up to $50,000 of those contributions plus associated earnings. See our First Home Super Saver Scheme page for more information.

It depends on the grounds for withdrawal and is subject to eligbility criteria. Financial hardship for people under age 60 is up to $10,000/year in each 12-month period. Alternatively, if you are over age 60 plus 39 weeks you may be able to access all of your super. The amount released under compassionate grounds is determined by the ATO based on the circumstances of your application. Permanent incapacity & terminal illness has no fixed amount. 

The amount of tax will depend on the condition of release you satisfied, your age and other circumstances. 

Withdrawals on compassionate grounds or for financial hardship

If you are under age 60 the amount of tax will generally be the lesser of your marginal tax rate or 22% (including Medicare Levy) of the amount taxable component included in the payment. If you’re over 60, the withdrawal is tax-free. 

Withdrawals for permanent incapacity

If you are under age 60, the amount of tax will generally be up the lesser of your marginal tax rate or 22% (including Medicare Levy) of the amount taxable component included in the payment. However, where the payment also qualifies as a disability superannuation benefit payment, special tax concessions may apply to help reduce the amount of taxable component included in the withdrawal. We recommend you speak to a financial adviser if you are in this situation. If you’re over 60, no tax is deducted. 

Terminal illness withdrawals 

Terminal illness withdrawals within the 24 month certification period are tax-free regardless of age. 

You can read more about how super payments are taxed on the ATO website.

Generally, your superannuation in accumulation phase is exempt from the Centrelink income or assets tests when you are below age pension age. Lump sum wWithdrawals from super are generally not assessed as income. Depending on what you use the withdrawn amount for, further assessment will apply, which may impact your or your partner’s Centrelink entitlements.

If you have insurance in your super and you withdraw all your money from your super account, your insurance cover will end. If you want to keep your insurance cover, you may want to consider keeping some money in your super account.  

If you’re facing a difficult time, you may find the following independent resources helpful:

• Government crisis payment. Provides a one-off payment if you’re in severe financial hardship because of extreme circumstances.
• 'Ask Izzy' Infoxchange Service Seeker. Online directory of health, welfare and community services. 
• National Debt Helpline. Not-for-profit financial counselling service that helps you tackle your debt problems.
• ASIC Moneysmart. Government organisation that helps you take control of your money with free tools, tips and guidance.
• Lifeline. 24-hour crisis support and suicide prevention services available online. Visit the website or call 13 11 14.
• 1800RESPECT. 24-hour support for people impacted by domestic, family or sexual violence. Visit the website or call 1800 737 732.
• MensLine Australia. Counselling, advice and support for Australian men. Visit the website or call 1300 789 978.

These independent resources are intended as a guide and are not an endorsement that the service provided is appropriate for your personal circumstances. For more information on a service provider’s offerings and their appropriateness, you should contact the service provider directly using the contact details provided.