Accessing your super early
Super is designed as a long-term investment to give you an income in retirement.
When can you access your super?
You can access your super when:
- When you turn 60 and are fully retired
- You may have limited access through a Transition to Retirement account between age 60 – 64
- When you turn 65, whether you are still working or not
Access to the government Age Pension
There are different rules for accessing the government Age Pension. If eligible you may be able to access full or partial Age Pension to help supplement you super.
> Super and the Age Pension
Accessing super early
You may be eligible access your superannuation early under severe financial hardship, on compassionate grounds or in other circumstances.
There certain government conditions you must meet before you can access your superannuation early.
Severe Financial Hardship
If you’re struggling financially, you may be eligible to withdraw some of your super on the grounds of severe financial hardship.
If you are under 60 years
You can apply if:
- You are receiving an eligible Commonwealth income support payment1 from either Centrelink or the Department of Veterans’ Affairs (DVA) (depending on which body makes your income support payments) for a continuous period of 26 weeks, and
- You are unable to meet immediate family living expenses2.
How much of my super benefit can be released?
If you are under 60 years of age you can apply for one single payment in any 12-month period. The minimum payment is $1,000 (unless your balance is less than this amount) and the maximum payment is $10,000 (before tax).
Will you be taxed on your withdrawal?
Yes. A severe financial hardship withdrawal is paid and taxed as a normal super lump sum payment. If you are under 60 years old this is generally between 17% and 22%. If you are over 60, you will not be taxed.
If you are between 60 – 64 years
There are different options available to you about accessing your super.
The options are:
- Apply for Financial Hardship to obtain up to $10,000 of your super balance. Refer to Services Australia for more information.
- Contact First Super to explore alternative options to access your super, which may provide funds that are more than the $10,000 maximum that can be obtained under Financial Hardship, or a regular income if preferred.
You will need to consider how accessing your super may impact your or your partners Commonwealth income support payments.
Important considerations
Before making a claim it’s important to consider the following:
- If you’re a temporary resident in Australia, you won’t be eligible to apply for a payment on severe financial hardship grounds.
- If you want to keep your First Super account open, you must have enough money in it to cover administration and investment fees.
- If you have insurance cover, you need to leave enough money in your super account to pay insurance fees. If you have insufficient funds to cover this cost, your insurance will end.
- If no contributions are received into your super account for 16 months, by law First Super would be required to cancel your insurance cover automatically. See Insurance and inactive member accounts for more details.
Read our Accessing Super early fact sheet for more information.
Compassionate Grounds
A super withdrawal on compassionate grounds must be for unpaid expenses that you have no other means of paying, including needing money 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
- Modifying your home or vehicle to accommodate your or your dependant’s severe disability
- Expenses associated with the death, funeral or burial of your dependant.
The amount you can withdraw is limited to what you’d reasonably need to cover these expenses.
It’s important to note that this type of withdrawal is assessed and administered by the ATO, not by First Super. We can help with any questions you might have, but we do not determine your eligibility or the amount you may be paid.
For more information read our Accessing Super Early fact sheet. The ATO website has more details on Early access on compassionate grounds, including how to apply.
First Home Super Saver scheme
The Government introduced the First Home Super Saver (FHSS) scheme to help Australians save for their first home using money added to their super account.
You can make extra voluntary contributions into your super account up to $15,000 per financial year and $50,000 in total. You can then withdraw that money (plus a deemed rate of return and minus any applicable tax) as a deposit on your first home. The advantage is you may be able to save faster.
To be eligible for release of the FHSS scheme you must:
- Be aged 18 years or older
- Have never owned a property before in Australia
- Not have previously requested a release of funds under the FHSS scheme
- Live in the house you purchase using the FHSS scheme for at least 6 of the first 12 months you own it.
If you are from New Zealand, you may be able to use your KiwiSaver towards purchasing your first home in Australia, even if you already own a property in New Zealand.
Financial hardship and FHSS
If you’ve previously owned property in Australia, and experienced financial hardship that resulted in a loss of ownership of a property (e.g. bankruptcy, natural disaster), you may still be eligible to participate in the FHSS scheme (subject to approval from the ATO). You can apply through myGov under the financial hardship provision or use a First home super saver scheme – hardship application form.
Resources
> First Super’s First Home Super Saver scheme fact sheet
> ATO’s First home super saver scheme
The ATO is responsible for administering this scheme, so you will need to ensure you meet all of their eligibility conditions, which are subject to change.
KiwiSaver
Retirement savings you transfer to Australia from New Zealand are held in your super account in two parts:
- The New Zealand-sourced component
- The Australian-sourced component
You can access the Australian-sourced component, when you have reached age 60 and fully retired. Or reach age 65 regardless of whether you are still working or not.
To access the New Zealand-sourced component of your super account, you will need to reach the New Zealand age of retirement (currently 65).
Find out more about KiwiSaver transfers.
Terminal illness or permanent incapacity
Permanently leaving Australia
If you have worked and earned super while visiting Australia on a temporary working visa, you can apply to have this super paid to you as a
departing Australia superannuation payment (DASP) after you leave.
You can claim a DASP if the following apply:
- You accumulated superannuation while working in Australia on a temporary resident visa issued under the Migration Act 1958 (excluding Subclasses 405 and 410)
- Your visa has ceased to be in effect (for example, it has expired or been cancelled)
- You have left Australia and do not hold any other active Australian visa
- You are not an Australian or New Zealand citizen, or a permanent resident of Australia.
Important: Super you access as a DASP will be taxed at 65% if you’ve been paid any of that super while on a subclass 417 or 462 visa or an associated bridging visa. Otherwise, tax applied is at a lower rate.
How to claim your super?
If you’re eligible you can submit an application via:
What if I’m an Australian or New Zealand citizen, or a permanent resident of Australia?
Australian and New Zealand citizens, and permanent residents of Australia aren’t eligible for the DASP.
Australian citizens and permanent residents heading overseas remain subject to the same rules as those living in Australia, even if you leave Australia permanently. You cannot access your super until you reach your preservation age and retire or satisfy another condition of release.
Australians and New Zealanders returning to New Zealand
Australians and New Zealanders permanently moving to New Zealand may transfer their super and KiwiSaver component to a KiwiSaver Fund.
> Transfers to a KiwiSaver scheme
We’re here to help.
For more information contact our Member Services Team on 1300 360 988 or email.
1A Commonwealth Government income support payment is an income support supplement, service pension, social security benefit or social security pension.
2Immediate family living expenses include household expenses, rent and rental bond, child support and child care, debts, car repair bills, health costs and veterinary bills and school fees.
