Superannuation
7. Accessing Superannuation
Authors: Staff Legal Eagle
Firm / Chambers:
Last updated: 27 Aug 2015
- A super fund is set up to provide for retirement benefits. It can only be accessed under strict conditions.
- Usually you can access the benefits:
- when you reach your preservation age;
- when you turn 65 which is retirement age; or
- under the transition to retirement rules.
- Preservation age is different to retirement age and depends on when a person was born.
- For example if you were born before 1 July 1960 your preservation age is 55 years.
- If you were born on or after 1 July 1964 your preservation age is 60 years.
- Usually people can access their super once they reach their preservation age under the transition to retirement income stream.
- Some people continue working past their preservation age. Under the transition to retirement scheme you may be allowed to withdraw a portion (an annual maximum of 10%) of your super as regular pension payments to supplement your other income.
- Depending on your fund’s policies you can choose to receive your super benefits either as a lump sum amount or as an income stream.
- Any money withdrawn from super fund is no longer considered ‘super money’ and any investments made with the withdrawn money are taxed at the marginal tax rate.
- The income stream option helps people better manage their finances.
- You may be able to access super benefits prior to retirement under certain circumstances such as:
- permanent or temporary incapacity;
- terminal illness;
- severe financial hardship; or
- for compassionate reasons.
- In all circumstances except for compassionate reasons whether you can withdraw money early depends on the super fund deed. You must therefore contact your super fund to discuss your circumstances.
- You may be required to submit evidence of financial hardship to your relevant super fund. This generally includes evidence of receiving Centrelink payments for at least 26 consecutive weeks. Centrelink should be able to provide you with a statement declaring that you have been receiving benefits for the prescribed period.
- If you are claiming compassionate reasons you must apply to the Department of Human Services.
- If you are a temporary resident who has a super account in Australia you may receive your super money once you have left Australia under a ‘Departing Australia Super Payment’ (DASP). You can complete the application process online through the Australian Tax Office Website or call 13 10 20 for further assistance.
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