Before an individual can access their super at least one condition of release must be met.
Conditions of release
The main conditions of release are:
reaching preservation age and retiring.
reaching preservation age and commencing a transition-to-retirement income stream.
ceasing employment on or after age 60.
turning 65 (even if you haven’t retired).
severe financial hardship
compassionate grounds
death.
For more information on these conditions and accessing your super please visit the Australian Taxation Office (ATO) website.
Preservation age
When a person reaches their preservation age, they can access your super as a lump sum or a retirement income stream if you’ve retired, or start a transition to a retirement income stream if they are still working.
Your preservation age depends on when you were born.
Retirement condition of release
The definition of retirement depends on the member's age and is summarised as follows:
In the case of a person who has reached a preservation age that is less than 60, the retirement condition of release is satisfied where:
an arrangement under which the member was gainfully employed has come to an end, and
the trustee is reasonably satisfied that the person intends never to again become gainfully employed for 10 hours or more each week.
A person with a preservation age of less than age 60 who ceases gainful employment before age 60 may still retire after age 60 provided the trustee is satisfied that at the time of the benefit claim the person intends never to again become gainfully employed for 10 hours or more each week.
In the case of a person who has attained the age of 60, the retirement condition of release is satisfied where:
An arrangement under which the member was gainfully employed has come to an end, and either of the following circumstances applies:
the person attained that age on or before the ending of the employment, or
the trustee is reasonably satisfied that the person intends never to again become gainfully employed for 10 hours or more each week.
Severe financial hardship
A person may be able to withdraw some of their super if they meet both these conditions:
They have received eligible government income support payments continuously for 26 weeks.
They are not able to meet reasonable and immediate family living expenses.
If a person withdraws super due to severe financial hardship it is taxed as a super lump sum.
The minimum amount that can be withdrawn is $1,000 and the maximum amount is $10,000. A person can only make one withdrawal in any 12-month period.
Access on compassionate grounds
A person may be allowed to withdraw some of their super on compassionate grounds. Compassionate grounds include needing money to pay for:
medical treatment and medical transport for them or their dependant
palliative care for them or their dependant
making a payment on a home loan or council rates so they don't lose their home
accommodating a disability for them or their dependant
expenses associated with the death, funeral or burial a dependent