Superannuation is one of the largest assets for many Australians and offers significant tax advantages. However, strict rules apply to when it can be accessed.

While super is most commonly accessed at retirement, death, or disability, there are limited circumstances where earlier access may be possible.

When early access may be available

Early access to superannuation is generally available in two key situations:

• Financial hardship – where you are receiving a qualifying Centrelink or Department of Veterans’ Affairs (DVA) payment for a minimum period and cannot meet immediate living expenses.

• Compassionate grounds – where funds are needed for specific reasons such as preventing a mortgage foreclosure, meeting medical expenses for a life-threatening illness or injury, or alleviating severe chronic pain.

Accessing superannuation on compassionate grounds

Accessing super on compassionate grounds requires an application to the Australian Taxation Office (ATO), supported by relevant medical certificates or mortgage information.

If the ATO approves your request, it will instruct your superannuation fund to release an amount sufficient to cover the approved expense.

Typically, you will need to collect all supporting documents and lodge the application yourself through your myGov account.

ATO warning on misuse and third-party involvement

The ATO has raised concerns about medical and dental providers exploiting early super access rules, particularly where super is being used for cosmetic procedures rather than genuine medical needs.

You may have seen advertisements promoting “new smiles” funded by super — but these arrangements can leave people with lower retirement savings and potential legal risks.

The ATO has addressed these issues in its article, Separating fact from fiction on accessing your super early.

Penalties for unlawful access

Superannuation fund members and self-managed super fund (SMSF) trustees should be aware that severe penalties apply when super is accessed outside the legislated conditions of release.

You should never provide another party with access to your myGov login or allow a third party to submit applications on your behalf.

Penalties may also apply if false declarations or misleading information are provided in the process.

What you should do

If you are considering early access to your superannuation, make sure you fully understand the eligibility rules and risks.

At Indigo Financial, we can help you review your situation, confirm whether you meet the conditions for early release, and guide you through the correct process to avoid potential compliance issues.

Contact Indigo Financial on (08) 8212 8585 if you need help with any of your accounting and taxation needs.

Note: The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.