Metastatic Cancer & Superannuation
As an Australian Citizen, permanent resident or holder of an eligible temporary visa, you may be able to access your Superannuation early on compassionate medical grounds if you have been given a metastatic or advanced cancer diagnosis.
In normal circumstances, you can access your super when you retire and reach your ‘preservation age’. This is between 55 and 60, depending on when you were born.
You can access your super when you reach age 65, even if you are still
working. There may be tax consequences if you are under age 60.
If accessing your super due to a terminal medical condition, you can do this at any age. For the payment to be tax-free under Australian law, you must have been given a life expectancy of less than two years.
Accessing your superannuation early
To apply under compassionate grounds, you can access the online application form via your myGov account linked to ATO online services.
From the ATO online services home page, select the heading option Super, then Manage, then Compassionate Release of Super.
- To access funds early due to a terminal medical condition, you will need to contact your fund directly, and they will provide you with the correct forms. You will require two medical specialists involved in your care to complete forms that verify your life expectancy as less than two years. If you live longer than two years, you will not have to pay the money back, nor is there any penalty.
How can I use/spend these funds?
If you access super on compassionate grounds, you can only use the funds for
specific unpaid expenses such as:
- Medical treatment
- Medical transport
- Modifying your home or vehicle to accommodate severe disability
- Palliative care
- For terminal illness, death, funeral or burial expenses for your dependant.
- Preventing foreclosure or forced sale of a home.
If you withdraw the funds due to a terminal medical condition, you are free to spend this money how you choose, you might use the fund to pay for treatment, pay off your mortgage, or take a family holiday. There are no rules on how this money must be used.
Is this the right decision for me?
The decision to withdraw superannuation is an individual one and must be considered carefully. Early removal of funds can result in tax implications and might result in the loss of insurance benefits attached to your superannuation policy.
It is advisable to chat with your financial advisor to make a decision that is right for you and your family. If you receive Centrelink income support, accessing your lump sum can affect these payments so chat to Centrelink’s Financial Information Service on 13 11 20 if you think your payments might be affected.
Superannuation insurance benefits
Some people don’t realise that many superannuation funds offer insurance options as part of their membership. It is common that some super funds have cover for life insurance, total and permanent disability insurance and income protection insurance automatically attached. It can be useful to check if this is the case with your fund.
Types of Insurance Benefits:
- Life Insurance: This provides a lump sum payment to your beneficiaries upon your death, or early on receiving a metastatic diagnosis.
- Total and Permanent Disability Insurance: Provides a lump sum payment if you are permanently disabled and unable to work. The definition of “total and permanent disability” can vary among policies.
- Income Protection Insurance: Provides regular payment to replace a portion of your income if you cannot work due to illness or injury, including cancer diagnosis. Each policy will have a different waiting and
If you have metastatic cancer many funds will release death benefit payments to those given a terminal diagnosis at the time they apply to release their lump sum benefit.
Every fund will have their own eligibility criteria for accessing payout. It can be useful to carefully review your super fund insurance documents to understand their specific terms and conditions.
Brigitte, diagnosed with Triple negative metastatic breast cancer and self-funded her treatment
Metastatic cancer & travel insurance
Receiving a metastatic diagnosis can have you wanting to fulfil many of the things you put off for a time when you had more money or space in your schedule. One of those things can be travelling and seeing the places in the world you have always wanted to see as well as visiting friends and families in other countries. Perhaps you want to make memories with your family on a distant beach, see some far off lands, or just tick off some of your life goals.
While travel within Australia means medicare coverage still stands and your private insurance, if you have this, will remain valid. There are a few things you need to consider before packing your suitcase and jumping onto a flight if you have a metastatic cancer diagnosis.
Most of us when travelling abroad take out insurance to protect us in situations of missing baggage, theft of personal belongings, travel cancellations or disruptions, emergency travel expenses, legal expenses etc. You should still be able to take out travel insurance that covers such things with a metastatic diagnosis, however you may have difficulty getting any health benefit cover or cover for cancellations and delays due to illness or cancer related treatment overseas.
Healthcare cover
Normally we take out insurance to cover us for medical access and treatment should we fall ill or have an accident on our travels.
Unfortunately with a metastatic diagnosis it can be really challenging to find an insurer that will provide cover for cancer related healthcare abroad should you choose to travel. Many patients with a metastatic diagnosis often fail to get insurance coverage for any health related incident while travelling after declaring their metastatic status.
You may be able to find cover that will give you health coverage but excludes anything cancer related, however it is common for those with a metastatic diagnosis to gain any health cover at all.
We recommend talking to a few insurers regarding your own personal situation as they will all have different policy criteria and rules.
Disclosing my cancer status
Under Australian Law you must disclose your past and present medical conditions to your insurer. Non disclosure of your cancer could invalidate your insurance should you need to make a claim.
If you have been diagnosed with cancer after you have taken out your policy there is no obligation to tell your insurer. If you need to renew or change your policy you will be required to tell them of your metastatic status.
Is it legal to refuse me a policy?
In Australia the law states that you cannot be discriminated against because you have cancer. However the Commonwealth Disability Discrimination Act 1992 allows insurers to refuse insurance coverage to those affected by cancer as long as they can provide adequate statistical, actuarial or reasonable evidence. Generally this involves insurers considering information about current treatments, cancer status and your current risk.
Every insurance provider will consider your case and may offer restricted cover or increase premiums. It is common that those with metastatic cancer will not be covered for any cancer related treatment should they choose to travel.
Travelling without insurance
Working with Medicare
If you are an Australian Permanent Resident, Australian or New Zealand Citizen, or a visitor from a country with reciprocal health care agreements you are eligible for free or subsidised cancer care and treatment within public hospitals through Medicare.
If you choose to be seen as a public patient in a public hospital you will not get to choose the Doctor who oversees your treatment and the waiting times for treatment may be longer, but the majority of your care and treatment will be covered.
Medicare and cancer treatment
Medicare will cover the following aspects of your Cancer care in a public hospital:
- Appointments with your oncologist and/or surgeon
- Any treatment required (e.g. surgery, chemotherapy, radiation therapy)
- Most diagnostic tests (e.g. blood tests, x-rays and imaging scans)
- Some allied health services.
For services out of hospital medicare (some diagnostic tests, allied health services etc.) will usually cover 85-100% of the fees for the service. The fees for different cancer services are known as the schedule fees. The list of schedules fees for different cancer services can be found on the Medical Benefits Schedule (MBS).
Some services may bulk-bill which means the Medicare benefit covers the full cost of their service and there are no out of pocket costs to you.
Some services including GPs may charge more than the Medicare benefit and therefore there will be a proportion of out-of-pocket costs and you will be required to cover the difference in the fee.
You also have access to a number of programs like the Mental Health Care Treatment Plan or Chronic Disease Management Plan to help with the cost of other services, such as visits to a psychologist or allied health professionals. Talk to your GP to see if you are eligible.
You can find a list of GP's who bulk bill here.
Medicare and private hospital treatment
To be treated in a private hospital without private health insurance you will need to self-fund treatment. We recommend talking to your medical team and getting a full estimate of the cost of any likely treatment.
Medicare safety net
If you need regular treatment and see your doctor regularly, your medicare safety net can help lower the costs of out-of-pocket fees for out-of-hospital services. Once your out of pocket expenses reach your safety net threshold medicare will reimburse you a higher proportion of your medical costs. Your Medicare Safety net resets at the start of each calendar year.
Radiation oncology services
