Industry Welcomes Early Access to Super Measures

The financial services industry has come out in support of the Government’s initiative to make it easier for Australians with a terminal illness to access their super.

Last week, the Assistant Treasurer, Josh Frydenberg, announced the Government would amend the provision for accessing superannuation for people suffering a terminal illness. Under the current provisions, terminal illness patients must obtain a certification from medical specialists that they have less than 12 months to live in order to access their super.

The new arrangement will extend the life expectancy period to 24 months, to take effect from 1 July 2015.

Mr Frydenberg said the decision to make the amendment followed representations made to the Government by Breast Cancer Network Australia, and other organisations. He said he understood that the current rules proved difficult for some people, including women with secondary breast cancer diagnosis.

“Understandably, they want access to their money as they may experience significant financial burden associated with treatment costs or want to make the most of their time with their family,” Mr Frydenberg said.

Increasing the life expectancy period will provide more people with the financial means to make the most of this time

“While this is a small regulatory amendment, it will make a big difference to the lives of those affected and that is why the Government has decided to act.”

Financial Services Council (FSC) CEO, Sally Loane, said the Council supported the increased threshold, because it would accommodate a range of personal circumstances.

“Flexible early release arrangements are a necessary consideration as we orientate the superannuation system towards accommodating varied circumstances of Australians.

“Super must be flexible for people with disabilities or caring responsibilities in an environment where mature age workforce participation should be encouraged,” she said.

The Association of Financial Advisers (ASFA) also welcomed the initiative.

“This is important as it will allow people to access their super to help fund treatment options that are not subsidised, and are often too costly for people to afford without accessing these savings,” said ASFA CEO, Pauline Vamos.

“People in the final year of their lives also often suffer from rapidly decreasing health, which makes it difficult for them to travel or participate in activities that allow them to enjoy the precious time they have left with their family and friends. Increasing the life expectancy period to two years will provide more people with the financial means to make the most of this time.”