You can access your super when you reach your preservation age and retire, or you turn 65 (even if you haven’t retired).The preservation age will increase from 55 to 60 between 2015 and 2025. You may also be able to access your super under the transition to retirement rules.
These below provides more detail on the conditions to determine when the trustee may or must pay a benefit to the member. These conditions are listed in <Schedule 1 of the SIS regulations> they are:
When can I withdraw?
Condition of release |
How Much can I withdraw ?
Cashing restriction’s in broad terms |
- Retirement
|
Nil (withdraw the whole amount) |
- Attaining preservation age
|
- a transition to retirement income stream;
- a non-commutable allocated annuity;
- a non-commutable allocated pension;
- non-commutable annuity;
- non commutable pension
|
- Attaining age 65
|
Nil (withdraw the whole amount) |
- Death
|
Nil, Must be paid to beneficiary/LPR |
- Terminal medical condition <ATO-Link>
|
Nil (withdraw the whole amount) |
- Permanent incapacity <ATO-Link>
|
Nil (withdraw the whole amount) |
- Former temporary resident
|
Amount of withdrawal benefit |
- Severe Financial hardship <ATO-Link>
|
>$1,000<$10,000 |
- Compassionate grounds <ATO-Link>
|
Amount determined by regulator ATO or for a loan not more than 3mnths repayments or 12mnths interest |
- paying the ato for lost member accounts
|
Required by the Act |
- Termination of gainful employment where benefit is less than $200 from a standard employer sponsor
|
Nil (withdraw the whole amount of $200) |
- Termination of gainful employment from a employer who had contributed Super
|
- Preserved benefits: Non-commutable life pension or non-commutable life annuity
- Restricted non-preserved benefits:
Nil
|
- Temporary incapacity <ATO-Link>
|
Non commutable income stream equal to the wages of the member before incapacity for period of incapacity |
- Etc
|
|
Meaning of Conditions of Release Retirement –is defined in the SIS Reg’s which basically defined in terms of pre 60 and post 60.
- > preservation age < than 60 – the person must have ceased employment and satisfied the trustee they have genuinely retired.
Retirement
Retirement does not mean that you cannot re-commence work. Many retiree’s in fact have recommenced work. You would need to justify this genuine intention to the ATO under an Audit. For example creating a retirement plan and having your financial planner and or accountant review it either in terms of the tax aspects or investment strategy or both would assist. It would show the ATO that you believe you had sufficient retirement savings in and out of super to retire together with booking an appointment with a professional substantiates this intention by an independent person. The fact that after retirement you went back to work would not jeapordise your genuine retirement. Your reason for going back to work could be any reason, eg you simply felt less happy with life than when you were working, and re entering the workforce either on a part-time or full-time basis fixed the problem and as such this would not jeapordise your genuine retirement, again you would need to substantiate this.
- > 60 – simply person must have ceased employment.
- Remember if your 65 then you can withdraw a Pension without retiring.
- Preservation age – Basically if you were born after 30.06.1964 then your preservation age is 60, for people below this then it depends on your date of birth but could be as low as 55 see <table of rates>.
- Server Financial Hardship, Compassionate grounds, permanent incapacity and temporary incapacity, terminal medical condition, is all detailed in the Reg’s.
- Cashing Restrictions means the amount that can be paid is restricted, Nil means in the table above there are no restrictions to the amount you can withdraw.
See what the ATO has to say about:
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