Early release of superannuation

Financial impact

If you release your superannuation early, it may impact the amount of other payments you get.

Early release of superannuation has some downsides. You may end up with:

  • more tax to pay
  • more child support to pay
  • lower Centrelink payments
  • less child support


If you’re below preservation age you’ll need to pay tax on any money you get from superannuation.

Please read more on the Australian Taxation Office website about:

If you’re applying due to a terminal illness, you won’t have to pay tax on this money. But it could affect any insurance you have with your superannuation fund. Ask them about this before you decide if early release of superannuation is right for you.

If you’re applying under the First Home Super Saver Scheme, we will not consider the superannuation you withdraw as part of your adjusted taxable income for family assistance payments.

Self-managed superannuation

You’ll also pay tax on early superannuation from a self-managed superannuation fund.

Please read about self-managed funds on the Australian Taxation Office website.

Severe financial hardship

If you’re applying due to severe financial hardship, an early release of superannuation may reduce your Centrelink payments. This includes:

You may need to pay:

  • a fee to your superannuation fund for early release
  • tax on the money you get from superannuation

Centrelink and child support

Phone us if you or your partner:

  • get a Centrelink payment
  • get child support
  • pay child support

Get advice

Talk to an independent financial adviser before you apply for early release of superannuation.

You can watch our video about choosing a financial adviser.

Read more about choosing a financial adviser on the MoneySmart website.

You can find a financial counsellor on the Financial Counselling Australia website.

Page last updated: 18 July 2018