The Department of Human Services (DHS) has reported a continuing increase in applications for early release of superannuation.
The DHS received 19,286 applications for early release of super in 2013/14, up 7% from the previous year and 18.1% over 2009/10. These figures are contained in the DHS annual report for 2013/14.
However approved applications for early release of super are not growing at the same rate, with 11,728 approved in 2013/14, up 1.89% from the previous year.
Source: Department of Human Services 2013/14 and 2011/12 Annual Reports
In 2013/14 the DHS approved a total of $150,991,150 in early release superannuation, with $12,874 the average amount released.
According to the DHS:
The Early Release of Superannuation Benefits programme allows eligible people to draw on their superannuation benefits under specified compassionate grounds in a time of need.
DHS has responsibility to consider applications for early release of superannuation on compassion grounds, such as medical treatment or paying a mortgage where there is “imminent threat of sale.” Additionally it is up to the superannuation fund to allow any release approved by the DHS.
The DHS was also responsible for the Small Business Superannuation Clearing House, until it was transferred to the ATO from 1 April 2014.
The DHS annual report says that:
The Small Business Superannuation Clearing House is a free government service to assist small businesses with 19 or fewer employees to meet their superannuation guarantee obligations and cut red tape
The number of employers registered with the clearing house had been declining, down from a high of 21,920 to 15,573 before the service was transferred to the ATO. However according to the ATO annual report this decline appears to have reversed, with over 24,100 employers now registered.
Want to be kept up-to-date with SMSF and Superannuation changes – why not subscribe to our Newsletter?
This article, as with all content on this site, is for informational purposes only, and is not legal, financial, tax or other advice. Please read our Terms and Conditions of Use.