What are the conditions of release for your super?

1. Being over preservation age and retiring

You can access your super upon reaching preservation age, which is between 55 and 60, depending on your date of birth. Previously, the preservation age was 55 for everyone, and remains so for individuals born before 1 July 1960. So, if  you were born before 1 July 1960, you’ll have already reached your preservation age at 55. However, for those born after that date, the superannuation rules were changed from 2015. 

As per the new rules, the preservation age for the release of super increases by one year for every birth year between 1 July 1960 and 1 July 1964. For those born after 1 July 1964, the preservation age is set at 60. 

Apart from reaching your preservation age, you should have also ceased gainful employment without any intention of becoming gainfully employed in future to access your super. However, if you’re 60 years or above, you can access your super once you leave your job. 

2. Reaching preservation age and beginning a transition-to-retirement income stream (TTR)

A transition-to-retirement (TTR) income stream is a superannuation pension scheme, which can be withdrawn while you’re still employed. It may be useful if you wish to reduce your working hours as you prepare for retirement.

3. Stopping work on reaching the age of 60

If you retire on turning 60 years, you’re eligible to receive the total amount accumulated in your super account. But if you continue working in another job, you cannot access the benefits accruing in your account after you quit your previous job, until you satisfy another condition of release for super. 

4. Once you reach the age of 65

This is the simplest condition, and you can access the money in your superannuation fund irrespective of whether you retire or continue working.

5. Your demise

On your passing, your nominees or dependants receive the amount in your super. If the recipient is your spouse or child (under 18 years), the amount can be paid in a lump sum or an income stream. If the nominated beneficiary is not your dependant, the amount will be paid as a lump sum.

Special ATO conditions of release of super allow you to access the funds if you’re temporarily or permanently unable to work, or facing medical or financial hardship. Another special circumstance might be if you’re buying your first home; however, it is applicable only on any extra savings you have in your super and not on the minimum employer contributions.

The amount withdrawn is tax-free and does not affect any other welfare payments you’re receiving. The special conditions include:

• If you cease working for an employer who has contributed to your super fund, you can receive the money as an annuity or pension, provided the fund’s rules allow for this
• If you’re permanently incapacitated to work in the future due to an accident or ailment
• If you’re unable to work temporarily due to mental or physical ill-health but would be able to resume paid employment in the future
• If you’re facing severe financial hardship and are unable to meet your family’s regular expenses like groceries and utility bills and have also received income support from the government for 26 consecutive weeks, you can access between $1,000 and $10,000 from your super fund

On certain compassionate grounds when you cannot meet some types of expenses like:

• Medical treatment and transportation for yourself or a dependant
• Funeral, death, and burial expenses of a dependant
• Paying the home loan instalments to ensure you don’t lose your house
• Palliative care for you or a dependant
• Home or vehicle modification or buying disability aids for catering to severe disability of yourself or a dependant

1. Terminal ailment

You may be able to access your super if you’re diagnosed with a terminal condition that is likely to result in death within 24 months of the diagnosis. However, at least two medical practitioners must confirm the diagnosis, either independently or jointly, and one of the practitioners should be a specialist practising in the area of illness or injury suffered by the person. 

2. First home super saver scheme

If you want to buy your first home, you can apply to withdraw the voluntary concessional or non-concessional contributions made since July 1, 2017, along with the investment earnings and interest. However, this amount has to be compulsorily used to pay for the home and there may be a cap on the maximum amount you can withdraw from any one financial year or across all years. You should visit the ATO website for the latest information on the scheme.