You generally cannot use your super to pay regular bills, as it's for retirement, but you might access it early in specific, limited situations like severe financial hardship (for arrears like rent/mortgage/utilities) or on compassionate grounds (medical, funeral, home/car modifications for disability) if you have no other way to pay and meet strict ATO criteria. You apply to the ATO for compassionate grounds, but apply directly to your super fund for severe hardship.
Am I eligible to use my super to pay off my debts? You may be able to access your super early in limited circumstances: in broad terms, on the grounds of severe financial hardship or for compassionate reasons. Before applying, it's important to understand the long-term impact.
There are additional conditions of release that will allow you to access your super early if you meet strict eligibility criteria:
You can apply to access some of your super before retirement if you cannot pay reasonable and immediate family living expenses and you receive government income support. Before age 60: you can apply to withdraw up to $10,000 of your super.
You can access your super: From age 60: If you're retired or leave a job. You can also open a Transition to Retirement account to access some of your super while you're still working. From age 65: Whether you're still working or not.
Meeting a "Condition of Release"
A lump sum withdrawal is a cash payment from your super savings to your bank account. You can request to withdraw a lump sum from your accumulation (Future Saver) account if you've met certain conditions set by the Government.
The 3-year bring-forward rule allows Members in an SMSF to contribute more than the Non-Concessional Contribution (after-tax Contributions) cap of $120,000 during a 3-year financial period from 1 July 2024. From 1 July 2021 to 30 June 2024, the non-concessional contributions cap was $110,000.
A hardship payment is an emergency payment to cover essential outgoings like food and bills.
You need to tell us if you access your super early. You can tell us by calling us on your regular payment line and in some cases updating your details online. Early release of super for you or your partner may reduce your Centrelink payments.
Accessing super to repay borrowed amounts for eligible expenses. If you or your dependant paid for an eligible expense by borrowing money and you don't have the financial capacity to repay the amount, you may be able to access some of your super to repay the outstanding balance of the borrowed amount.
A worker can choose to retire as early as age 62, but doing so may result in a reduction of as much as 30 percent. Starting to receive benefits after normal retirement age may result in larger benefits. With delayed retirement credits, a person can receive his or her largest benefit by retiring at age 70.
You don't pay tax if you withdraw up to the 'low rate cap', currently $260,000. If you withdraw an amount above the low rate cap, you pay 17% tax (including the Medicare levy) or your marginal tax rate, whichever is lower.
On 1 July 2025, the general Transfer Balance Cap — the limit on how much you can move from your super into the retirement phase — will increase from $1.9 million to $2 million.
Yes, you may be eligible to access your superannuation to pay for dental treatments. While using superannuation for dental care is less common than other reasons for early withdrawal—such as compassionate grounds, financial hardship, or urgent medical expenses—it is still possible.
Information that is relevant would include: Details of your income. Details of your expenses. The cause of your financial hardship (and evidence of the cause if available, for example, a medical certificate)
Eligibility
So, what qualifies as an "immediate and heavy financial need?" The IRS lists the following examples:
In the organisation's super balance update, it found 2.5 per cent of the population have a super account of more than $1 million, as of June 2021. This represents 417,567 individuals, ASFA said, and is a 29 per cent increase from the 322,200 individuals who held over $1 million in June 2019.
Minimum drawdown rates for your super
You can choose how much you receive from your Choice Income or TTR Income account each year, as long as you get at least the minimum. There is no maximum withdrawal limit in a Choice Income account, while the TTR Income account has a maximum withdrawal limit of 10%.
Currently, if an employee earns $450 or more in a month, you then must also pay a superannuation guarantee. From the 1st of July 2022, you will need to pay superannuation guarantee contributions to an employee's super fund regardless of how much you pay them.
Over time, those tax savings can make a big difference. Earnings inside your super are also taxed at just 15%, and when you retire and start drawing it out (after age 60), those withdrawals are generally tax-free. Compare that to a savings account, where your interest is taxed at your full income rate.
You may be allowed to withdraw your super early on compassionate grounds to pay for:
Severe financial hardship
You can withdraw a minimum of $1,000 and a maximum of $10,000. You can only make one withdrawal from your Cbus Super account in any 12-month period. 2. You are not gainfully employed on a full or part-time basis on the date of the application for your benefit.