Superannuation is designed to safeguard and support Australians in retirement. Due to unforeseen circumstances, what if you need to access that money sooner? Financial hardships, medical expenses, or family responsibilities can occur without much warning.

Thankfully, there are exceptions to when you can access your superannuation before retirement and in times of need.

At eairwoman, we know the decision to dip into your super can be hard and often feel overwhelming. That’s why we’re here to walk you through it-clearly, calmly, and without judgment.

We support and empower women Australia-wide through various steps of retirement planning so you can access your money when needed while safeguarding your financial future.

Let’s explore the situations where you may be eligible, the tax implications, and how the choice of accessing your super early may impact your long-term financial wellbeing.

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Grounds for Accessing Super Early

In Australia, you generally can’t access your super until you reach the preservation age and retire. However, the Australian Taxation Office (ATO) outlines several exceptions that allow for early access, such as:

1. Severe Financial Hardship

If you’ve been receiving eligible government income support payments continuously for at least 26 weeks and are unable to meet reasonable living expenses, you may be able to withdraw part of your super (between $1,000 and $10,000 once in a 12-month period).

2. Compassionate Grounds

This includes situations where you urgently require funds to:

  • Pay for medical treatment, or transport for you or a dependent for it
  • Prevent foreclosure on your home due to mortgage arrears
  • Modify your home or vehicle due to severe disability
  • Pay for palliative care or funeral expenses

You’ll need to provide documentation and evidence to support your claim, and the ATO must approve the application before you can access the fund.

3. Terminal Medical Condition

If two registered medical practitioners certify that you’re likely to have less than 24 months to live, you may be able to access your super tax-free.

4. Permanent Incapacity

If you become permanently incapacitated and are unable to ever return to work, early access to your super may be possible.

5. Temporary Residents Leaving Australia

If you’re a temporary resident and leaving Australia permanently, you may apply for a Departing Australia Superannuation Payment (DASP).

For full eligibility details and application instructions, visit the ATO’s Early Access to Super information hub.

Is Tax Applied to Super Withdrawals?

In most cases, yes. Early super withdrawals are taxed. How much tax you pay on super withdrawal depends on your circumstances and the reason for the withdrawal:

  • For financial hardship or compassionate grounds, the amount withdrawn is usually taxed as a super lump sum, generally at 17% (including the Medicare levy) if you’re under 60.
  • For terminal illness, no tax is applied if all of the ATO’s conditions are met.
  • For permanent incapacity, tax may be reduced if certain conditions apply.

It’s important to check with the ATO or a general adviser to understand the full tax implications of your specific situation.

Consider the Long-Term Impact

While it may be necessary in some situations, accessing your super early can significantly impact your retirement savings. Every dollar withdrawn now means less compounding growth over time, especially for women, who already stand at a disadvantage due to the gender super gap.

This is where the eairwoman app can help. The “What If” calculator on our app can guide you in determining how an early withdrawal could affect your future retirement outcomes. You’ll get a personalised view of your financial path, so you can make confident, informed decisions that balance today’s needs with tomorrow’s goals.

Final Thoughts

Early access to your super is possible but it’s a serious step that deserves careful thought and consideration.

If you’re facing hardship, dealing with medical costs, or experiencing life changes, know that you’re not alone, and you have options.

With eairwoman, you can find out about your eligibility, understand the tax rules, and utilise our expertise to make reliable decisions that support your long-term wellbeing.

Ready to plan with clarity and confidence? Download the Eairwoman app and take control of your super today.

Have questions? Contact us for support. We’re here to help you take on big financial decisions.

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