3 November 2025
Many members reach out to us asking about whether it’s possible to use superannuation to cover emergency or unforeseen costs, like rent arrears, job loss, or court fees. If you’ve been wondering about this too, you’re not alone, and we’re here to support you.
Super is designed for your future, so the law tightly controls when you can take money out early. When you’re under pressure this can feel really frustrating… but these protections exist to safeguard your longer-term financial security. Early access is only allowed when there’s a genuine, immediate need. We’re here to make the process as clear and respectful as possible so you can focus on what matters: your wellbeing and your household.
This guide explains how early access works under two pathways – severe financial hardship and compassionate grounds – plus the key impacts to think about before you decide.
Financial hardship super rules
You may be able to access super under the severe financial hardship rules, if both of the following conditions apply.
You can’t meet reasonable and immediate living expenses – think rent, mortgage or overdue bills.
You've been receiving eligible Centrelink income support for at least 26 weeks, and you’re still receiving it when you apply.
If you’re eligible, the amount you can withdraw under this provision is typically between $1,000 and $10,000, limited to one lump-sum payment per 12 month period.
What evidence do I need to prove hardship?
You’ll need to provide evidence -such as bills or bank statements- showing that you cannot cover those living costs any other way.
Before you apply, you’ll also need confirmation of your income support payments from Centrelink. Services Australia has information about what’s required, and we can help you understand the steps.
A tip on timing: if you’re close to the end of a 12-month window or if your income support status is about to change, talk to us before you begin, so you don’t accidentally limit your options. To apply for financial hardship, contact us on 1300 361 477.
Early release on compassionate grounds
Accessing super under compassionate grounds is different to the severe financial hardship rules in two key ways. Compassionate grounds are assessed by the ATO, not your super fund; and you do not need to have been receiving Centrelink payments to apply.
The ATO may approve an early release to pay for specific expenses, such as:
Medical treatment for you or a dependent (including palliative care)
Modifying your home or vehicle due to a severe disability, for you or your dependent
Funeral, burial or death-related expenses for a dependent
Preventing the foreclosure or forced sale of your home
If your application is approved, the ATO will specify the amount that can be released to meet these costs. Documentation is essential – expect to provide quotes, invoices, medical reports or lender letters, depending on your circumstances. Withdrawals made under compassionate grounds are generally taxable – our coaches can walk you through what that could mean for your take-home amount.
You can access further information about the release of super under compassionate grounds via the ATO website. Documentation and evidence is required as part of your submission, and tax will apply to withdrawals. Find out more at the ATO.
Staying legal
Illegal schemes exist which target financially vulnerable people and encourage them to transfer super into a Self-Managed Super Fund (SMSF) then withdraw it to do things like pay off debts, buy a house* or car, or travel. These are all illegal uses of early withdrawal. The ATO is investigating reports of health and dental practitioners encouraging people to use their super to pay for non-eligible treatments.
The ATO has information on how to protect yourself from illegal SMSF schemes.
The consequences of accessing super illegally means it’s not worth the risk, even if it’s not intentional – so it pays to stay informed and check ATO rules before you make any decisions.
Is early withdrawal right for you?
When cash is tight, it’s natural to look for the fastest way to breathe again. Still, early access to super has flow-on effects. Here are some factors to consider.
It can affect other payments. Taking money from your super can impact your eligibility for certain government benefits, including Family Tax Benefit, Child Care Subsidy, income support or parental leave pay. If you withdraw, you need to let Centrelink know.
Tax matters. Withdrawals are usually added to your taxable income in the year you receive them, and the amount released may be taxed – so the money deposited into your bank account can be less than the amount withdrawn from your super.
Insurance inside super. If your super balance drops below $6,000, your insurance cover held through super could be impacted, depending on your policy settings. Check your cover and think about what you need if this is you.
Your future balance. Super is invested to grow over time. Taking money out today reduces what you’ll have later – and if markets are down when you withdraw, you may lock in losses.
This doesn’t mean you shouldn’t apply if you truly need to – but it does mean it’s worth pausing to have a chat with future you, to balance the immediate relief with the long-term picture.
Mainly, we’re here for you
Money stress can be overwhelming. You deserve practical help and a safe space to ask questions. GuildSuper's Coach Team will:
Listen first. We start by understanding your situation and the deadlines you’re facing.
Explain your options. We’ll outline the process around severe financial hardship and compassionate grounds, in plain English – and explain how your tax and benefits might be affected.
Help you prepare. We’ll help you find and fill in the right documents, from Centrelink confirmations to ATO forms.
Stay with you. If you proceed, we’ll keep things as simple and respectful as possible. And if you don’t, we’ll help you explore other options, like budgeting tools, hardship programs, or insurance claims where relevant.
We know many Child Care Super / Guild Super members are navigating tight budgets, caring responsibilities, and competing priorities. So if you’re worried about making ends meet this month, please reach out. Our Coach team is here to help.
Whether you’re considering an application under severe financial hardship or compassionate grounds, or you just want to understand your options, you can expect clear guidance without jargon, and zero judgement; just the right information at the right time so you can act with confidence. You don’t have to navigate this alone.
Chat to a coach
Reach out to our coaching team for tailored advice about your options at no extra cost.
Call 1300 262 249
*Super can be used towards buying your first home under the First Home Super Saver (FHSS) Scheme – but you have to put in extra voluntary contributions yourself, using super’s lower-tax environment to save for a deposit more efficiently.