Medicare to be Super Regulator for Compassionate Grounds Release

The administrative arrangements for the processing of claims for release of super benefits under the compassionate grounds release condition, by which Medicare is the administering agency, will now be made permanent and given legislative backing.

Currently, Medicare processes the release of these benefits from APRA regulated funds and from SMSFs under its administrative delegation arrangements.

Under a recently introduced bill  - Superannuation Legislation Amendment (Early Release of Superannuation) Bill, 2011  - the responsibility of Medicare for receipt, processing and acceptance of such requests will be made permanent and will be set out in the Superannuation Industry (Supervision) Act, 1993.

The Bill does not alter the preconditions for or the proofs required for an early release on compassionate grounds to be granted.

Responsibility remains with the trustee of the relevant fund for the early release of super benefits on grounds of severe financial hardship.