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Get early access to superannuation during the holidays!

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The ATO establishes deadlines for early access to superannuation throughout the holiday season. The Australian Taxation Office has issued fresh guidance for people who wish to apply for early access to their superannuation on compassionate grounds during the Christmas closure period. If you are in serious financial trouble, you may be entitled to receive some of your pay early. You can also apply for additional reasons. Compassionate reasons include the need for money to pay for medical care and medical transportation for an individual or any dependent, as well as making a payment on a home loan or council rates to keep the home.

Since the ATO offices will close on Friday, December 24, 2021, and reopen on Tuesday, January 4, 2022, individuals who require a compassionate relaxation of super determination should apply before this period. Unfortunately, applications filed after the 10th of December would be cross-examined in January 2022 after the holidays. One needs to allow some extra time for the fund to discharge any authorized funds from the super account.

Also, it is a rare chance to access an early super as there are a few conditions under which individuals can access their superannuation early. On compassionate grounds, one may be able to withdraw some of the super for unpaid expenditures, for which one has no alternative way or income. Compassionate reasons include the necessity for money to pay for:

  • medical care and transportation for you or a dependent

  • palliative care for you or a family member

  • Making a mortgage or council tax payment so that you do not lose your property

  • adjusting to a handicap for yourself or a dependent

  • Expenses incurred as a result of your dependant’s death, funeral, or burial.

Withdrawn supper will also be paid and taxed like other regular super chunk amounts. The tax will be deducted automatically from the super account for the super fund. Though tax rate will be determined on several conditions, including individuals’ age and other content of superannuation amount. Do not apply if you are a member of an exempt public sector super scheme i.e. EPSSS. For the early release of super, you must apply directly to your super scheme. The EPSSS has its state and territory legislation regarding superannuation early release. Find out if you are a member of an EPSSS by contacting your super fund.

In the hurry of early access to your super don’t fall for scams. Some advisers claim to provide early access to your super by moving it to a self-managed super fund, this is unlawful, and one can face severe consequences of the same if they are a part of it. They also mimic the ATO or a reputable organization, such as your super-fund, to steal the money or personal identifying information. Will contact individuals and charge for free services such as early access to your superannuation. In case you receive a phone call, text message, or email offering to assist you in releasing your superannuation early, do not provide your contact information or click on any of the links. Be cautious of such swindles and schemes. Wishing all Merry Christmas!

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