It has come to the attention of the Australian Prudential Regulation Authority (APRA) that at least one company has been widely promoting itself as having assisted thousands of Australians in gaining early release of their superannuation benefits. Several others have been advertising similar services.

APRA CEO Graeme Thompson said, "We are very concerned that companies are charging needy clients fees for making applications for early release of their superannuation benefits.

"People facing exceptional circumstances may apply directly to APRA for the early release of superannuation benefits, after checking their funds regulations. The rules for early release are quite clear. An intermediary is not necessary."

Superannuation is designed to provide for retirement. As a general rule, benefits are not intended to be available until people retire from the workforce at age 55 or later. However, the Government has recognised that people in severe financial hardship, or who face other problems specified by Government legislation, may have a legitimate need to access some of their superannuation early.

The rules of each superannuation fund determine if an early release of benefits is at all possible. If a fund does allow the early release of benefits, in most cases people can recognise for themselves whether an application is likely to be successful. To qualify on grounds of severe financial hardship, a person must satisfy the fund trustee that he or she cannot meet reasonable living expenses, and provide a letter from Centrelink stating that he or she has been in receipt of a Commonwealth income support payment for a continuous period of 26 weeks.

The approval of APRA is required prior to any release for other specified grounds, which are limited to critical medical treatment not readily available through the public health system, palliative care, and mortgage repayments where the payment will prevent the mortgagee from foreclosing.

For those superannuation fund members who meet these conditions, APRA seeks to make the process of application as easy as possible so members can apply on their own behalf. It is not necessary to pay fees to any organisation for the release of this money.

"There are very specific conditions under which benefits can be released," said Mr Thompson, "I suggest that any person who has a genuine need should contact their superannuation fund to determine what those conditions are before submitting an application to APRA."

For more information contact:

Gloria Peterson Public Affairs Manager 02 9210 3385 or 0419 250 286