Compassionate grounds

Check you’re eligible for a compassionate grounds payment

Compassionate grounds include needing money to pay for:

• medical treatment or medical transport for you or your dependant, or
• palliative care for you or your dependant, or
• making a payment on a home loan or council rates so you don't lose your home, or
• modifying your home or vehicle or buying disability aids to cater for the severe disability of you or your dependant, or
• expenses associated with the death, funeral or burial of your dependant.

You can contact the ATO to check whether you are eligible, by referring to the ATO website or calling them on 13 10 20.

Apply with the ATO

You need to apply online with the ATO for early release of super on compassionate grounds.

There’s no limit to the amount you may ask to withdraw on compassionate grounds, however the ATO has discretion to determine the amount that’s released.

Consider the tax implications

The Government requires us to withhold tax before we make your payment. The maximum amount we withhold (if we have your tax file number) is 22% but will depend on your circumstances.

The release amount shown on the ATO approval letter is after any applicable tax, meaning it is the amount you will receive. The amount withdrawn from your super account may be higher, as it will include any relevant tax.

For example, if you are under 58 years old and are approved for $10,000 you will receive $10,000, however your super account balance will be reduced by $12,820.51 ($10,000 plus $2,820.51 to cover tax we must withhold). The payment will have to be reduced if your account balance is not enough to meet the payment and tax.

If you are 60 years old or more, we do not have to withhold any tax on your payment.

Consider the impact on your insurance cover

If you withdraw all of your money from your super account your account will close and your insurance cover will also end. You may want to consider keeping some money in your super account if you want to keep your insurance cover.

If your cover ends, you can still submit a claim for any insured events that happened before the date that your insurance cover was cancelled. However, you won't be able to make a claim for insured events that occur afterwards.

Your next step – print and complete the form

Once you've applied to the ATO, they’ll notify us of the outcome. If your request is approved, you’ll need to submit a form:

• FirstChoice members can download the Compassionate Grounds Application form. You can return your completed form by post to the address on the form or you can also log in to FirstNet and submit via e-Post.
• FirstWrap members can either contact your financial adviser to progress your claim or you can call us and we’ll email you the form.
  

You’ll need to print the form so it can be signed and witnessed. If you don't have a printer, let us know and we’ll post you the form

Other ways you can get help

You may also find the following independent resources helpful:

• 'Ask Izzy' – Infoxchange Service Seeker
  Online directory of health, welfare and community services. 
• Lifeline – call 13 11 14
  If you’re experiencing a personal crisis call or visit lifeline.org.au
• Griefline – call 1300 845 745
  Free counselling support to anyone experiencing grief and loss
• National Disability Services
  Resources, news and disability service providers for people with a disability and carers
• National Debt Helpline
  Not-for-profit financial counselling service that helps you tackle your debt problems.
• ASIC Money Smart
  Government organisation that helps you take control of your money with free tools, tips and guidance.

These independent resources are intended as a guide and are not an endorsement that the service provided is appropriate for your personal circumstances. For more information on a service provider’s offerings and their appropriateness, you should contact the service provider directly using the contact details provided.