SMSF Association urges toughness on early super release

The SMSF Association has called for tougher controls around the early release of superannuation benefits, saying that only those with “genuine hardship claims” and a genuine lack of financial capacity should have access under the reforms.

In its submission to the Treasury’s review on releasing super benefits early, the Association argued that current rules allowing access to superannuation “for most medical treatments” on compassionate grounds were being taken advantage of.

It said that a tightening of the assessment of financial capacity “should solve the problem.”

Related News:

SMSF Association chief executive, John Maroney, said that early release policies needed to ensure that a balance was struck between superannuation’s primary objective of meeting retirement income needs and having early access to super as individuals have no means to otherwise meet an expense incurred through genuine hardship.

Maroney expressed concern that a recent increase in access to super on medical grounds “strongly suggested” that genuine hardship requirements were not being met.

He also suggested that individuals’ motivations for accessing super early for surgeries may not be driven by financial need.

“We are … concerned that this increase in access of superannuation for medical treatment has been driven by greater public awareness of the ability to access superannuation for medical reasons, a situation that has been potentially exacerbated by some medical professionals promoting this option,” Maroney said.

The Association also supported early access to superannuation for victims of domestic violence and crime, provided there were “reasonable restrictions” in place.

Related Content

Super fund members to face more volatility

The continuing volatility of global share markets is going to be an ongoing concern for super fund members, particularly for those edging retirement, ...Read more

Govt makes key concession on insurance inside super

The Federal Government has made a key concession on insurance inside superannuation for low balance members and those aged under 25 – allowing diffe...Read more

Superannuation could bolster agriculture industry

The House of Representatives Standing Committee on Agriculture and Water Resources has called for more superannuation investment in Australia’s agri...Read more



Add new comment