20 December 2017

Consultation commences on early release of superannuation including victims of crime compensation

The Minister for Revenue and Financial Services, the Hon Kelly O’Dwyer MP, today released for public consultation an issues paper on the rules for early release of superannuation benefits. The paper covers issues around the early release of superannuation on compassionate and severe financial hardship grounds, and for victims of crime compensation.

This consultation will be an important part of the Treasury-led review of these rules, announced on 8 December 2017, which will make recommendations to Government early in 2018.

The paper seeks views on whether the early release rules appropriately balance the need to:

  • preserve superannuation benefits to meet the objective of providing income in retirement to substitute or supplement the Age Pension;
  • ensure that superannuation is available for current consumption in certain, limited cases of genuine hardship or where warranted for compassionate reasons; and
  • ensure the rules can be administered fairly and effectively.

The paper also asks whether a perpetrator’s superannuation should be accessible to pay compensation or restitution to a victim of crime; and, if so, the circumstances in which this may be appropriate. 

“I look forward to working with stakeholders to ensure that the rules governing early release of superannuation benefits remain fit for purpose,” Minister O’Dwyer said.

Stakeholders are invited to comment on the issues paper by lodging a submission on the Treasury website. Submissions are due by 12 February 2018.