When can I apply for withdrawing superannuation benefits?

Before you start applying to access your super benefits, you should check to see if you’ve reached your preservation age. You would have reached the age of preservation at 55 years if you were born before 1 July 1960, but if you were born later than 1 July 1964, you will need to turn 60. The following table reflects the current preservation age rules as per the ATO.

However, reaching the preservation age is just the first step. You also need to check if you meet any of the conditions of release stipulated by the ATO, which are:

• You’ve retired permanently after reaching your age of preservation, in which case you can withdraw your super benefits as a lump sum.
• You’re starting a transition-to-retirement income stream after reaching your preservation age, which pays you super benefits periodically.
• You’re 65 or older, which means no cashing restrictions apply, and you can choose to withdraw super either as a lump sum or as an income stream.

You may be able to withdraw super benefits if you give up a salaried job when you turn 60, even if it’s only temporary. Also, super rules allow you to withdraw super benefits without the above restrictions in some exceptional circumstances. These could include if you are permanently disabled or are leaving Australia after temporary residence. You can visit the ATO website for more information on early access to super.

Once you reach the preservation age, you can choose to withdraw your super funds or keep them invested if you don’t need the money immediately. 

To apply for super withdrawal once you reach the preservation age or fufil another condition of release, you’ll need to fill out a form to declare that you’re retiring. Your super fund will take a few business days to verify the information. Then, they’ll transfer the amount to the account you have advised them is your designated account. 

In your declaration, you’ll want to mention whether you wish to make a full or partial withdrawal. If you make a partial withdrawal, your super account will remain open, and you can make lump sum withdrawals when needed. If you choose this option, you’ll continue paying 15 per cent tax on your investment returns from super as long as the account is open.

Some super funds also provide the option of setting up a pension account. A pension account allows you to set up a tax-free income stream with the option to take out extra cash whenever you need it. You may have already set up an income stream as part of a transition-to-retirement plan. 

If you’re nearing your preservation age, your super fund might actively contact you to make you aware of your options. In any case, you can get in touch with your fund to find out more about the ways in which you can access your super, how to do it and when you can.

If you are or were temporarily living in Australia and are moving back to your country of birth, you may qualify to withdraw your super benefits as a departing Australia superannuation payment (DASP). The conditions you need to satisfy include:

• The super contributions were made when you were legally working in Australia, and you did not come to Australia on an investor retirement visa.
• You no longer have a valid Australian visa.
• You neither live in Australia anymore nor have any other valid Australian visas.
• You haven’t become a citizen or permanent resident of Australia, nor are you a New Zealand citizen.

To file a DASP claim, you can submit an online application through the ATO, irrespective of whether you’re withdrawing benefits from a super fund or if the super amount is held by the ATO. 

If, for instance, more than six months have elapsed since you left Australia, your super fund may have transferred the balance in your account to the ATO. Consider checking if your super money is with the ATO before filing a DASP application. You might also want to consult a tax advisor as you may still owe taxes in Australia on the super withdrawal.