When can I access my super?

Superannuation is designed to provide retirement income, and your savings cannot be accessed until you reach age 60 and retire. 

It sounds simple enough, but in practice there are multiple ways you may be eligible to legally access your super under Australian legislation. These are known collectively as conditions of release. 

The four most common conditions of release are: 

• Age 60 and retiring 

• Age 60 and starting a transition-to-retirement income stream 

• Being 65 or over 

• Death 

Early release 

There are additional conditions of release that will allow you to access your super early if you meet strict eligibility criteria: 

On compassionate grounds 

• If you are suffering severe financial hardship 

• If you are diagnosed with a terminal medical condition 

• If you are temporarily incapacitated 

• If you are permanently incapacitated 

• Through the First Home Super Saver Scheme 

• If you are a temporary resident departing Australia 

• If you terminate gainful employment with less than $200 in your super account 

We will look at each of these conditions of release in more detail. 

1. Age 60 and retiring 

The definition of retirement for superannuation purposes is more complicated than the common meaning of the word and does not necessarily require you to be leaving work for good. 

The retirement condition of release has two branches. Meeting either one will permit you to access all your super (as a lump sum, an income stream, or a combination of both).  

The first branch requires you to declare you have permanently retired from the workforce. To make this declaration you must have: 

• Reached your preservation age (now 60) 

• Ceased gainful employment (at any time in the past) 

• No intention of becoming gainfully employed again in the future. 

The second branch requires only that you have ceased a gainful employment arrangement after turning 60. You may be changing jobs, may have resigned from one job and kept another (or others), or may not be intending to return to work. You must have left the job after your 60th birthday. 

Being gainfully employed in this context has a technical meaning. That is, receiving any sort of monetary reward for working at least ten hours a week. If you have never worked, you cannot use the retirement condition of release. Instead, you can access your super when you turn 65. 

2. Age 60 and starting a transition-to-retirement income stream 

When you reach your preservation age (now 60), you can start a transition-to-retirement income stream. This is a superannuation pension that you can draw while you are still working. It can be a way to scale back your working hours and plan effectively for your retirement. 

For example, you can work less hours or salary sacrifice into super to save tax while using your TRIS to supplement your salary so you can maintain your lifestyle. 

Learn more about how a transition-to-retirement pension works. 

3. Age 65 or over 

This is the simplest condition of release. Once you turn 65, you can access your super even if you have not retired.  

4. Death 

When you die, your dependents or nominated beneficiaries will be entitled to receive what is left of your super. 

If the recipients are your dependents, such as a spouse or child under the age of 18, your super balance can be paid either as a lump sum or an income stream. 

If your beneficiary (or beneficiaries) are not your dependents, the payments must be made as lump sums. 

Lump sum payments are tax free when paid to a person who is dependent according to tax law. Tax may be payable on income streams, depending on the age of the deceased and the recipient and the tax components of the benefit. 

5. Compassionate grounds 

You may be able to access your super early on compassionate grounds provided you meet strict eligibility conditions, and your super fund allows it. 

Compassionate grounds can include the need to: 

• Pay for your own medical treatment or transport (or for the treatment or transport of one of your dependents, such as a spouse or child) 

• Make a mortgage or council rates payment to prevent you from losing your home 

• Pay expenses required to accommodate your severe disability or a dependent with a severe disability 

• Pay for the palliative care of yourself or a dependent 

• Pay for the death, funeral, or burial expenses of a dependent. 

If you’re approved to access some of your super early on compassionate grounds, the amount is paid and taxed as a lump sum. The ATO process applications for this type of release. 

6. Severe financial hardship 

Accessing super early due to severe financial hardship is also possible, provided you meet strict eligibility conditions, and your super fund allows it. 

Your fund will consider you to be in severe financial hardship if you meet the following criteria: 

You have received government welfare payments from the Department of Human Services (DHS) for at least 26 consecutive weeks (except for ABSTUDY, Austudy or Youth Allowance student payments).

You are still receiving those payments when you apply for the early release.

You are unable to pay your reasonable and immediate family living expenses. 

If you have reached your preservation age, you can apply to withdraw as much of your super as you wish if: 

You have been receiving eligible Commonwealth income support payments for a combined period of at least 39 weeks since reaching your preservation age, and 

You’re not gainfully employed when applying for release on financial hardship grounds. 

If you’re approved to access some of your super early due to severe financial hardship, the amount is paid and taxed as a lump sum. 

7. Terminal medical condition 

If you have a terminal medical condition, two medical practitioners must certify that you have an illness or injury that will result in your death within 24 months of the date of the certificate. At least one of these medical practitioners must be a specialist in your terminal illness or injury. 

You can choose to access all or some of your super, subject to the rules of your fund. There are no legal restrictions on the amount you can access, but withdrawals must be taken as tax-free lump sums. 

If you have life insurance (death cover) with your super, the insured amount can often be released to you in addition to the balance of your super account. 

8. Temporary incapacity 

You can access super benefits early due to temporary incapacity provided the benefits come from specific sources. 

You are temporarily incapacitated (according to Australian super legislation) if either physical or mental ill-health issues cause you to temporarily: 

• Be unable to work at all 

• Work fewer hours than you normally would. 

If you are temporarily incapacitated and you need to supplement your income via your super, you may be able to access two potential benefits: 

Income protection insurance benefits 

Any voluntary employer-funded benefits that you may have in your super fund. 

Both these potential benefits must be paid as a taxable income stream. They cannot be converted to a lump sum. 

9. Permanent incapacity 

You can access your super benefits early due to permanent incapacity provided you meet these eligibility conditions. 

Two medical practitioners must certify that you have physical or mental health issues that are likely to stop you from working ever again in the job you are qualified to do. 

If you are permanently incapacitated, you can access: 

Any total and permanent disability (TPD) insurance benefits that you may have in your super fund if the insurer agrees that you meet the relevant definition of TPD in the insurance policy 

Any other super benefits you have accumulated 

Permanent incapacity payments can be taken as a lump sum, income stream, or combination of both. Tax rates vary based on the type of payment (lump sum or income stream) and the tax components of your benefit. 

Learn more about early release of super for illness or injury. 

10. The First Home Super Saver Scheme 

The First Home Super Saver Scheme (FHSSS) is a government scheme aimed at encouraging people to save money for a deposit on their first home in the lightly taxed super environment. 

This scheme allows voluntary contributions you make to super to be released to purchase your first home. Up to $15,000 of contributions from each financial year and $50,000 of contributions in total can be used towards an FHSSS release.  

11. Temporary resident leaving Australia 

The Departing Australia Superannuation Payment (DASP) is available to departed temporary residents who worked and earned super in Australia. It is not available for permanent Australian residents, nor for Australian and New Zealand citizens. 

In addition to having accumulated super while working as a temporary resident in Australia: 

Your temporary visa to work in Australia must have expired or been cancelled 

You must have left Australia. 

Good News to Know ... 

If you withdrew money from your super fund as part of the COVID-19 early release of super measure, you can now recontribute that amount as a non-concessional contribution and it will not count towards your non-concessional contributions cap. 

Recontributions of COVID-19 early release of super payments can be made between 1 July 2021 and 30 June 2030. For more information, and a Notice of recontributions of COVID-19 early release amounts form, see the ATO website here. 

In Conclusion 

To access your super in Australia you must satisfy a condition of release. Different conditions of release have different payment conditions and tax implications.