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BCNA understands that accessing superannuation early is a sensitive and complex decision for you and your family. We have developed this fact sheet to ensure that you have up to date and straight forward information to assist you to make the decision that's right for you and your family. Background On September 11, 2007 the Coalition Government announced changes to superannuation legislation that allow people with a terminal illness, regardless of their age, to access lump sum superannuation payments tax free.
When did these changes come into effect?
These changes to the superannuation tax rules came into effect on September 12, 2007, under measures created by the Australian Taxation Office (ATO). The changes were then backdated so that they apply to superannuation payments made on, or after, 1 July 2007. Permanent legislation has been passed by the federal parliament, which means that the changes apply to all superannuation funds, approved deposit funds and retirement savings accounts.
Current eligibility requirements
Currently, to be eligible to access your superannuation tax free before the age of 60, you need to 1) be able to access your superannuation under a ‘normal' condition of release such as financial hardship, compassionate grounds, invalidity retirement etc, and 2) provide statements from two medical practitioners (at least one of which is a specialist) to certify that you have a terminal illness with a life expectancy of twelve months or less. What do I do now? If you think you'd like to access your superannuation under these new arrangements, you should contact your superannuation fund directly, and discuss this with them.
What if I am eligible, and have accessed my superannuation, but my payout was taxed?
In some circumstances it may be that both you and your superannuation fund were not aware of these changes when you applied for a lump sum superannuation payout on or after July 1st 2007 and you were taxed on that amount as a result. If this happened to you, you should contact your superannuation fund to discuss the situation. If you can provide statements from your medical practitioners to confirm that at the time of the payout you met the eligibility criteria, the superannuation fund can pay the tax that was withheld directly to you. If your superannuation fund does not wish to pay the withheld tax directly to you, you can contact the ATO and receive this tax back through the taxation system. It may be useful to direct your superannuation fund to the measures released by the ATO, which confirm the new arrangements. These changes are legislated under the Tax Laws Amendment (2008 Measures No. 2) Bill 2008.
Dispute Resolution
If you disagree with a decision of a superannuation fund you can contact the Complaints Unit within that superannuation fund. If you are unable to resolve the dispute to your satisfaction you can take the matter to the Australian Prudential Regulation Authority (APRA). They can be contacted by telephone on 1300 131 060. If all other dispute resolution options have been exhausted, the Superannuation Complaints Tribunal can make a determination on a matter. They can be contacted on 1300 780 808.
Submission to Treasury
In October 2007 BCNA sent a submission to the Federal Treasury Department in response to a consultation paper they developed on these changes. While BCNA is very supportive of this important initiative, we did suggest a number of changes that we believe will ensure better outcomes for women with secondary breast cancer.
BCNA recommended changes to the certification process, so that people need only provide certification from one medical practitioner. This recommendation acknowledges the mobility difficulties that many women with secondary breast cancer may experience, as well as the costs and waiting times involved in accessing medical practitioners. It also acknowledges the unfair impact this requirement may have on women living in rural and remote Australia, who may need to travel some distance to access a relevant medical specialist.
In addition, BCNA recommended that medical certification should extend to two years life expectancy, rather than the twelve month time period currently required.
BCNA also recommended that an appropriate and effective communication strategy be developed to ensure that people with a terminal illness, their families, medical practitioners and superannuation funds are aware of these changes to superannuation.
Finally BCNA recommended that a suitable appeals process be developed to ensure that women have adequate recourse should a dispute arise.
 BCNA's full submission to Treasury 48.43 Kb.
Monitoring Women's Experiences
BCNA is keen to hear from our members about any issues, good or bad, you may have experienced in accessing your superannuation tax free. We will use this to provide feedback to Treasury about how well the interim measures are working. All identifying details will of course be removed. We can be contacted by telephone on 1800 500 258 or by email
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Advocacy and Promotion
BCNA will continue to advocate on behalf of women with secondary breast cancer. We will work to ensure that all eligible women, their families and their medical practitioners are aware of these change
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