21 February 2018

Supporting early release of superannuation benefits on compassionate grounds

The Turnbull Government has today released for consultation the exposure draft regulations on the transfer of the early release of superannuation benefits on compassionate grounds to the Australian Taxation Office (ATO).

These regulations provide the necessary administrative changes to reflect the transfer of responsibility for early release on compassionate grounds from the Department of Human Services to the ATO. The regulations complement the legislation giving effect to this transfer of responsibility, which was introduced into Parliament on 7 February 2018. 

The draft regulations will also improve the integrity of current processes and aim to expedite the release of funds to successful applicants.

“The regulations require the ATO to directly notify a member’s superannuation trustee when it has authorised the early release of funds, removing the need for that trustee to independently confirm the amount authorised for release”, Minister O’Dwyer said.

“At what are often times of great stress and concern for the individuals involved, these changes will cut the administrative burden for superannuation trustees and will help successful applicants receive their authorised funds sooner.”

The exposure draft regulations and explanatory statement are available on the Treasury website. Interested stakeholders are encouraged to provide their view by Friday 23 March.

These regulations support the Treasury Laws Amendment (2018 Measures No. 1) Bill 2018, which was introduced to Parliament on 7 February 2018, and are unrelated to the ongoing review of the early release of superannuation benefits