Currently, patients must obtain medical certification from their doctor stating they have 12 months or less to live.
The government announced last week that from 1 July 2015, the life expectancy period will be extended to two years.
ASFA chief executive Pauline Vamos said this is an important amendment since it will allow people to access their super in order to help fund treatment options that are not subsidised, and “often too costly for people to afford without accessing these savings”.
"People in the final year of their lives also often suffer from rapidly decreasing health, which makes it difficult for them to travel or participate in activities that allow them to enjoy the precious time they have left with their family and friends,” said Ms Vamos.
“Increasing the life expectancy period to two years will provide more people with the financial means to make the most of this time.”
Ms Vamos said that being able to access superannuation in order to improve quality of life is something those with a terminal illness “no doubt deserve”.