Responsibility for administration of the early release of superannuation benefits on compassionate grounds has been transferred from the Department of Human Services (DHS) to the Australian Taxation Office (ATO).
Announcing the change, Minister for Revenue and Financial Services, Kelly O’Dwyer said the transfer would ensure successful applicants received funds sooner in their time of need.
“These changes will expedite the assessment of early release applications, improve the integrity of the process and allow the funds to be released more quickly to successful applicants,” Ms O’Dwyer said.
She said that as the ATO was responsible for most of an individual’s interactions with the superannuation system the change would enable it to build on those existing relationships and provide a more streamlined service.
“A key improvement under the new process is the ATO providing electronic copies of approval letters to superannuation funds at the same time as to the applicant,” Ms O’Dwyer said.
“This will mitigate fraud risk and negate the need for superannuation funds to independently verify the letter with the regulator.”
She said DHS would continue to accept early release applications until 30 June after which there would be a short transition period.
The Minister said the transfer of function complemented the review under way on the rules governing the early release of superannuation benefits on compassionate grounds.
She said Treasury would report on the review’s findings later in the year.
“I would like to take this opportunity to thank DHS and its staff for administering the early release provisions since 2011,” Ms O’Dwyer said.
