Dying to Discuss

Can someone with a terminal illness access their superannuation early?

Australia · 29 August 2026 · 5 min read · Reviewed by Dr Kane Treble

Yes, in some cases.

Yes, in some cases. A person may be able to access their superannuation early if they meet the terminal medical condition rules. They usually need certificates from two registered medical practitioners, and one must be a specialist in an area related to the illness or injury.

General information: This page gives general information for people in Australia. It cannot tell you exactly what is happening in one person's situation. If you have concerns about a symptom, medicine, treatment decision or change in someone's condition, contact their doctor, palliative care team, nurse or other treating health professional. Superannuation, tax and insurance rules can depend on the person's fund and circumstances. Confirm current rules with the super fund, ATO, Services Australia, Moneysmart or a qualified adviser.

The basic rule

Moneysmart says a person may be able to access super early if two doctors confirm they have a terminal illness or injury. One doctor must be a specialist in the condition. The doctors must also confirm the person is expected to live for less than 24 months.

Current Commonwealth superannuation regulations describe a terminal medical condition as existing when two registered medical practitioners certify that the illness or injury is likely to result in death within a certification period ending not more than 24 months after the certificate date, at least one practitioner is a relevant specialist, and the certification period has not ended.

In practice, the person should contact their super fund. The fund will explain its forms, medical certificate requirements and process.

Is the payment taxed?

ATO tax return guidance says amounts received from super because of a terminal medical condition are tax free and should not be included as an assessable super lump sum in that section of the tax return.

Tax can be complicated if there are other payments, income streams, insurance claims, death benefits, defined benefit funds or overseas issues. Ask the super fund, ATO or a tax adviser if the situation is not straightforward.

Insurance through super

Many super funds also include insurance, such as life cover, total and permanent disability cover or income protection. Moneysmart says life cover through super may pay when a person dies or has a terminal illness.

Ask the fund:

Do not close or roll over a super account without checking insurance first. Closing an account can sometimes affect insurance attached to that account.

How to apply

The usual first step is to contact the super fund and ask about early release due to terminal medical condition. The fund may ask for:

Ask whether copies are acceptable or originals are needed. Ask how long the process usually takes and whether urgent processing is possible.

Other early access options

Terminal illness is not the only possible early access pathway. Moneysmart explains that early access may also be possible in limited situations such as compassionate grounds, severe financial hardship, permanent incapacity, temporary incapacity, small balances and some other specific rules.

The application pathway can differ. For example, compassionate release may involve the ATO, while terminal illness access is usually handled through the super fund. Check before applying.

Be careful with scams and bad advice

The ATO warns that early access to super is only legal when a person meets a condition of release. Illegal early access schemes can lead to tax, penalties, fees, identity theft and loss of retirement savings.

Be cautious if someone offers to help access super early for a fee, says they can get money out for any reason, or suggests setting up a self-managed super fund to withdraw money before the rules allow it.

Who can help

Useful contacts may include:

If the person has trouble using the phone or online forms, ask the fund what authority or nominee process is needed for someone else to help.

When to get help now

This is usually a financial and administrative issue, not a medical emergency. Contact the person's doctor or palliative care team if the person needs medical certificates, symptom support or help from a social worker.

Call 000 if there is a life-threatening medical emergency or immediate danger.

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Sources and further information