<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>A growing number of Australians are accessing their superannuation early to pay for critical </span><a href="https://www.9news.com.au/health" rel="" target="_blank" title="medical treatment"><span>medical treatment</span></a><span>.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>But there are warnings about the hidden tax trap and the impact on your retirement.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>It was the week of Christmas in 2020 when Rose Charles' life changed forever.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/sydney-brisbane-rat-lungworm-disease-experts-warn-of-rise/e602a03a-1338-4326-b934-d3de12f942b7"><strong><span>Deadly 'rat lungworm' on the rise in one Aussie state</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"I didn't ask to get cancer, I didn't want to get cancer," Charles said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Sixteen rounds of chemotherapy, 30 rounds of radiation, a double mastectomy and breast reconstruction followed.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The gruelling treatment forced her to quit her job while raising a teenage son.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/growing-number-of-australians-accessing-their-super-early-for-medical-treatment/157df0c6-22e6-4e1f-9bd3-ab04825ceec3" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"You've still got gas bills, you've still got school fees," she said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Rose joined a growing number of Australians tapping her superannuation early to make ends meet.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"I only took out the cost of one procedure and that was $35,000," she said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>At least 50,000 Australians accessed their super early on compassionate grounds last financial year.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>In total, more than $1 billion has been approved for release. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"We've certainly seen an increase over the last 12 months, it's about a ten per cent increase," Aware Super general manager Peter Hogg said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The big catch, as Charles discovered, is that you have to pay tax.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Because super is taxed favourably going in, if you pull it out before you turn 60, you have to pay the tax you skipped.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>That can be up to up to 22 per cent, on top of the 15 per cent paid on your contributions on the way in to your fund.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"So the government got a fair chunk," Charles said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>You can get a refund at the end of the financial year, if your marginal tax rate is less than 37 per cent.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The strategy comes with a warning, to think hard about sacrificing future retirement earnings, only if it's absolutely necessary. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"It's quite a high rate for people who have those immediate needs we think and we think there's probably a better way we can do it," ASFA chief executive Mary Delahunty said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/national/how-to-follow-9news-digital/29855bb1-ad3d-4c38-bc25-3cb52af1216f"><strong><span>DOWNLOAD THE 9NEWS APP</span></strong></a><strong><span>: Stay across all the latest in breaking news, sport, politics and the weather via our news app and get notifications sent straight to your smartphone. 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