People who successfully apply for early access to their superannuation will “receive funds sooner”, under a change made by the federal government.
From 1 July, the Australian Taxation Office (ATO) will oversee the early release of superannuation benefits on compassionate grounds.
The ATO will assume responsibility from the Department of Human Services (DHS), which the government said would ensure “successful applicants receive funds sooner in their time of need”.
“The ATO is responsible for most of an individual’s interactions with the superannuation system. This change will enable the ATO to build on these existing relationships and provide a more streamlined service to members,” according to the government.
Fewer obstacles to overcome
Under the new system, the ATO will now provide electronic copies of approval letters to superannuation funds at the same time as to the applicant.
The government said this would mitigate fraud risk and negate the need for superannuation funds to independently verify the letter with the regulator.
Individuals will also upload accompanying documentation simultaneously with their application, rather than the current two-step process.
DHS will continue to accept early release applications up until 30 June. It will also assess all these applications, even after the 1 July handover to the ATO.
This administrative change complements an ongoing review into the early release of super. Treasury is due to make a report to the government on the review later this year.