From May 2008, AvSuper will provide superannuation benefit payments on a tax free basis, to members with terminal medical conditions, even if they are still working.
The Federal Government recently introduced changes to taxation law and a new superannuation ‘condition of release’ which will permit super fund members with a terminal medical condition to access their superannuation benefit tax free, even if they are still working. The Government believes that this will assist in meeting the costs of medical/palliative care and provide members with a better opportunity to arrange the beneficiaries of their estate.
In order to qualify for tax free release of superannuation benefits on the basis of a terminal medical condition, each of the following conditions must be met:
- Two registered medical practitioners provide written certification (jointly or separately) that the member suffers from an illness, or has incurred an injury, that is likely to result in the death of the member within a certification period of up to 12 months of the date of certification,
- At least one of the registered medical practitioners is a specialist practicing in an area related to the illness or injury suffered by the person, and
- For each of the certificates, the certification period has not ended
If you would like to discuss your eligibility to access your AvSuper account balance under the terminal medical condition of release, please contact us on 1800 805 088.