What Is Compassionate Release of Super?
Superannuation is designed to support you financially in retirement, but in limited situations, you may be able to access your super early — particularly on compassionate grounds.
These provisions are intended to help cover urgent, essential expenses for you or your dependants, only when all other options have been exhausted.
The ATO manages these applications, and it’s vital to understand who qualifies, what expenses are eligible, and how the process works.
Be Cautious: Illegal Early Access Comes at a Cost
Only the ATO can approve early release of super on compassionate grounds. Be wary of any third party offering to help you access your super outside of official ATO channels — unauthorised access is illegal and can result in severe financial and legal consequences.
When Can You Access Super on Compassionate Grounds?
The law permits early access to your super in very specific and limited circumstances. Compassionate grounds include:
- Medical treatment or transport for yourself or a dependant
- Preventing foreclosure or forced sale of your home
- Modifying your home or vehicle due to severe disability
- Palliative care for a terminal illness
- Funeral, burial, or death-related expenses for a dependant
To qualify, you must be an Australian or New Zealand citizen or permanent resident. If the expenses relate to someone else, they must legally qualify as your dependant.
If you have a self-managed super fund (SMSF), you must obtain ATO approval before accessing funds.
Important: Expenses Must Be Unpaid
Applications must relate to unpaid expenses. If you’ve already borrowed money to cover an eligible cost but now can’t repay it, you may still be able to apply to access your super to cover the outstanding balance — as long as you can provide proper documentation.
Common Scenario: Medical Treatment
Medical expenses are one of the most common reasons for compassionate super access. You may be eligible if:
- The treatment is for a life-threatening illness, to relieve acute or chronic pain, or for a serious mental illness
- The treatment is not readily available through the public health system
- The treatment is for you or a legal dependant
What documentation is required?
- An itemised invoice or quote showing out-of-pocket costs (after any Medicare/private health rebates)
- Two medical reports:
- One from a specialist in the relevant field
-
One from a registered medical practitioner or another specialist
These reports must clearly explain the condition, the necessity of the treatment, how it will help, and why it is not publicly available.
Before You Apply
Here’s what to do before lodging your application:
1. Contact your super fund
- Confirm they allow early release on compassionate grounds
- Check your balance and ability to cover the expense (and tax withholding, up to 32%)
- Ask about any fees or insurance impacts
2. Gather all required evidence
- This includes quotes/invoices, medical reports, and supporting documents specific to your situation
- If repaying a loan, you’ll also need evidence of the borrowing and why you can’t repay it
3. Understand the tax implications
- Withdrawals are taxed as super lump sums, which are included in your assessable income
- Tax rates will depend on factors like your age and overall income
How to Apply
You can apply:
- Online via your myGov account, or
- By submitting a paper application to the ATO
The ATO doesn’t charge fees, but third-party services might. Always ensure you’re dealing with a registered tax agent, and never share your myGov login details.
If your application is approved:
- The ATO will send a letter of approval to your super fund
-
You’ll then need to contact your fund directly to arrange payment
(Note: super funds have their own processes and timeframes)
Final Thoughts
Accessing your super early is a significant financial decision. The compassionate release provision exists for genuine hardship and should be considered only after exhausting all other alternatives.
If you’re unsure whether you qualify or need help preparing your application, professional advice and assistance can make all the difference.