The Government has urged the super and insurance industry to give priority to people seeking early access to their superannuation.
Minister for Superannuation Nick Sherry has urged the superannuation and insurance industry to give priority to bushfire-related life insurance and total and permanent disability (TPD) claims.
Under existing rules, people may be able to seek early access to superannuation under compassionate grounds.
"Today, I have spoken with the Australian Prudential Regulation Authority (APRA) and asked it to communicate with super funds and their insurers about prioritising bushfire-related life insurance and TPD claims," he said.
Sherry has asked APRA to prioritise any access requests arising from an area where the natural disaster relief and recovery arrangements apply.
"This will include Victorian bushfire-related and Queensland flood-related applications for early access to superannuation on specified compassionate grounds," he said.
Sherry has also spoken with the Association of Superannuation Funds of Australia (ASFA).
"ASFA has confirmed super funds will do everything they can to assist," he said.
However, ASFA has urged caution over early access to superannuation in such a time of crisis.
While early release of superannuation is helpful to people in a time of crisis it is important that people are aware of other options available to them, according to ASFA chief executive Pauline Vamos.
"A number of superannuation funds offer cost-effective insurance such as total and permanent disability or permanent disability cover. Now is the time for such benefits to be utilised," Vamos said.
The Australian Institute of Superannuation Trustees (AIST) backs the Government's move.
"The AIST supports any move that expedites the process by which bushfire victims who have lost their homes or find themselves in financial hardship can access some or all of their superannuation," AIST chief executive Fiona Reynolds said.
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