7.1 Accessing superannuation benefits

In Australia, superannuation refers to the retirement savings system, where employers make regular contributions to a superannuation fund on behalf of their employees. Superannuation savings are generally preserved until a certain condition of release is met, allowing individuals to access their funds.

Common conditions of release

1. Retirement: The most straightforward condition is reaching your preservation age (between 55 and 60, depending on your birthdate) and retiring from the workforce permanently. Once you meet this condition, you can access your superannuation as a lump sum or start a regular income stream, such as an account-based pension.
2. Attaining preservation age and starting a transition-to-retirement income stream: If you have reached your preservation age but haven't retired, you can access some of your superannuation by starting a transition-to-retirement income stream. This allows you to receive regular payments while still working.
3. Reaching age 65: Once you turn 65, your superannuation can be accessed regardless of your employment status. There are no restrictions or conditions on accessing your funds at this age.
4. Permanent incapacity: If you suffer a permanent disability that prevents you from ever working again, you may be able to access your superannuation benefits.
5. Terminal medical condition: If you are diagnosed with a terminal illness and have less than 24 months to live, you can access your superannuation benefits tax-free.
6. Temporary residents departing Australia: Temporary residents who permanently leave Australia can claim their superannuation as a departing Australia superannuation payment (DASP) if they meet certain criteria.
7. Severe financial hardship: In cases of financial hardship, individuals who have been receiving government income support for at least 26 consecutive weeks and meet specific eligibility criteria can access a portion of their superannuation.
8. Compassionate grounds: In certain exceptional circumstances, such as medical expenses, mortgage foreclosure, or funeral costs, you may be able to access your superannuation on compassionate grounds. Approval is granted by the Australian Taxation Office (ATO).

In addition to the common conditions of release mentioned earlier, there are some less common conditions that may allow access to superannuation funds in Australia. These conditions include:

Less common conditions of release

9. Permanent departure from Australia (for New Zealand citizens): New Zealand citizens who have permanently departed Australia may be eligible to access their superannuation.
10. Superannuation balance below a certain threshold: If your superannuation account balance is below a specific threshold (currently $200 or less), you may be able to access your funds even if you are under the preservation age. This is known as the "low balance" condition of release
11. Death: In the event of the death of a superannuation fund member, their superannuation benefits are generally paid to their nominated beneficiaries or the legal personal representative of their estate.
12. Release to pay for ATO tax liability: In some cases, if you have an outstanding tax debt with the Australian Taxation Office (ATO), they may authorize the release of your superannuation to pay off that debt.
13. Family law settlements: During the process of divorce or separation, the court may order the division of superannuation assets as part of a financial settlement.
14. Invalidity: If you become permanently incapacitated or suffer from a severe medical condition that prevents you from ever working again, you may be able to access your superannuation under the invalidity condition of release.