Can You Access Super To Pay Off Debt?

When debts are mounting and cash flow is tight, your superannuation balance can look like an obvious source of funds. After all, it is your money. But can you access your super early simply to pay creditors? 

Generally, no. Superannuation is preserved for retirement and can only be accessed early in limited circumstances. More importantly, for someone considering bankruptcy, withdrawing super to pay debts can have consequences that should be understood before acting. 

When can you access super early?

Having significant debts does not, by itself, allow you to withdraw your super. 

The Australian Taxation Office says early access is only available in limited circumstances, including: 

• severe financial hardship;