Q1: I am 52 years old. I’m having heart surgery and won’t be able to work for 3 months, and I have no sick leave because I have just started a new job. My surgery will cause me financial hardship but I cannot access my super benefits under the ‘severe financial hardship’ exemption because I am not on Centrelink benefits. Can you give me any other ideas to access my super benefits? I did read somewhere about temporary incapacity.
Trish’s response: I’m very sorry to read about your predicament. As you mention, it is worthwhile to check whether you have an income protection (also called ‘salary continuance’) policy with your super fund, or with any other super fund that you may belong to, or outside the super system, that pays you an income in the circumstances that you are currently facing.
Another possibility is to apply for early release of super benefits on compassionate grounds. Although the compassionate grounds are very specific, one of those grounds is to assist with medical treatment. You must apply to the Australian Prudential Regulation Authority (APRA). Quoting directly from the APRA website:
Medical treatment
To help pay for medical costs, for you or your dependant, required to:
- treat a life-threatening illness or injury; and/or
- alleviate acute or chronic physical pain; and/or
- alleviate an acute or chronic mental condition
provided that the treatment is not readily available through the public health system and is not covered by any applicable private health insurance and/or Workers’ Compensation.
You can find the steps involved when applying for early release on compassionate grounds here
Note: Centrelink benefits may be payable in your circumstances. Chat to Centrelink about the Sickness and Disability benefits available (www.centrelink.gov.au or phone 13 27 17)
Warning: Some super funds don’t permit early access for any reason, even for compassionate grounds, so check that your super fund’s rules allow you to withdraw early on these grounds before applying to APRA.
Q2: I’m wondering if I can access my super for health reasons. I need weight loss surgery to basically stay alive, and it is very costly, but without it I probably won’t be able to work again. I am 50 years old.
Trish’s response: I’m sorry to hear about your circumstances. My answer to the question above (relating to heart surgery) is also relevant to your question.
I’m not aware of the policy on accessing super for weight loss surgery, but morbid obesity may possibly be considered a life-threatening illness. An individual can access super benefits for certain types of dental treatment so early access to treat obesity makes sense to me. If the Australian Prudential Regulation Authority (APRA) considers this to be the case, then you can access super benefits to pay for medical treatment.
You can find more information on early release based on the compassionate ground of ‘medical treatment’ by clicking on this link.
When you do click on the link, scroll down the page and you can then access another document by clicking on the link titled ‘Download information on the documentation required for medical practitioners’.
Note: You can also check whether you have income protection insurance inside your super fund (check with all of your super funds if you have more than one fund) or outside the super system and determine whether the policy pays an income in such circumstances.
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