With many Australians are under significant financial pressure due to the worsening economic climate, people are now considering all avenues to get some sort of release in the downturn. One issue which may be considered is the prospect of accessing some of your superannuation to prop up your finances. The Australian Prudential Regulation Authority (APRA) administers the Government legislation that permits the early release of superannuation under ‘specified compassionate grounds’. These grounds are set out in the Superannuation Industry (Supervision) Act 1993, regulation 6.19A.

Although APRA must be satisfied that your application meets the criteria for early release of superannuation under specified compassionate grounds, the final decision rests with the trustee of your superannuation fund. As a first step, you should contact your superannuation fund to make sure it will allow the early release of your superannuation benefits. Regardless of APRA’s approval you will not be able to access your benefits if your fund does not allow the early release of superannuation. It is up to your superannuation fund trustee (or RSA provider) to decide what benefits they will and will not release. Further, the superannuation fund trustee/RSA provider may also charge you fees for the early release of your superannuation. This seems very strange in that although APRA has guidelines in place, superannuation funds don’t have to allow early access to super. It makes it important that when choosing a superannuation fund that you choose one which allows flexibility in times of need!