When can I access my super?

A common question asked by clients is “When can I start accessing my Super?”.

Aside from some limited circumstances, you can start to access your Super once you have reached your “Preservation Age”.

Your Preservation Age depends on your date of birth – and is summarised as follows:

Accessing super after reaching Preservation Age

Once you have reached your Preservation Age, the amount of Super you can access depends on your work status, as detailed below.

Please note – it is not compulsory to start accessing your Super once you have reached your Preservation Age.

Under 60 – Still Working

• Eligible to commence a Transition to Retirement Income Stream (TRIS).
• Must draw a minimum of 4% of your balance each financial year.
• Limited to drawing a maximum of 10% of your account balance each financial year.
• Drawings are taxed at marginal tax rate (to the extent that the drawings are from the “taxable component” of your member balance) less a 15% tax offset.
• Earnings in the super fund on the TRIS account are taxed at super fund rate of 15%.

Under 60 – Permanently Retired

• Eligible to commence an account based pension.
• Must draw a minimum of 4% of your balance each financial year – if pension has been commenced.
• No limit on the maximum drawing amount each financial year (i.e. unrestricted access).
• Drawings from “taxable component” are taxed at marginal tax rate, less a 15% tax offset. Concessional tax rules apply in the case of certain lump sum withdrawals – further details below.
• Any lump sum withdrawals you receive from the super fund (aside from pension drawings) may be eligible for the low-rate cap. This is a lifetime cap (currently $210,000 for 2019/20 year and subject to indexation) – whereby lump sum withdrawals from taxable component are tax free up to the cap amount.
• Earnings in the super fund on the account based pension are tax free (if a pension hasn’t been commenced, the account remains in Accumulation phase and earnings are taxed at 15%).

Between 60 and 65 – Still Working

• Eligible to commence a Transition to Retirement Income Stream (TRIS).
• Must draw a minimum of 4% of your balance each financial year.
• Limited to drawing a maximum of 10% of your account balance each financial year.
• Drawings are generally tax free.
• Earnings in the super fund on the TRIS account are taxed at super fund rate of 15%.

Between 60 and 65 – Still Working BUT have ceased an employment position after turning 60

Example 1: You resign from your gainful employment position after reaching 60 years of age, and commence another position with a different employer.

Example 2: You have 2 gainful employment positions, and resign from one of those positions after reaching 60 years of age (you can continue in the other position).

• Eligible to commence an account based pension.
• Must draw a minimum of 4% (or higher - based on age) of your balance each financial year – if pension has been commenced.
• No limit on the maximum drawing amount each financial year (i.e. unrestricted access).
• Drawings are generally tax free.
• Earnings in the super fund on the account based pension are tax free (if a pension hasn’t been commenced, the account remains in Accumulation phase and earnings are taxed at 15%).

Over 65

• Once you reach 65 years of age, you have unrestricted access to your super balance. You should seek advice at that point in relation to the possible commencement of account based pension (if you have not already commenced a pension).

Summary table below – for your reference

* Only the “taxable component” of withdrawals is subject to tax at personal marginal tax rate (with 15% tax offset available).

** Lump sum withdrawals may be eligible for low rate lifetime cap – being $210,000 as of the 2019/20 financial year and subject to indexation (no tax applicable up to this amount).

*** There are some instances where super withdrawals after age 60 are taxable, if there is an “untaxed element” in your superannuation balance. This is not a common scenario.

Are there cases where I can withdraw my super early?

As mentioned above, there are limited cases where you can legally access your super prior to reaching your preservation age. We have listed some of these cases below, however have not covered them in detail in this article.

• Compassionate grounds

• Severe financial hardship

• Permanent or temporary incapacity

• Terminal medical condition

Other issues to consider

Before accessing any of your superannuation benefits, you should consider the implications such as taxation, and the effect this may have on any Centrelink entitlements. There are a number of advantages and potential disadvantages in relation to accessing super, and as always, it is important to get the right advice.

It is also important to note that documentation is required to be prepared for pension and lump sum payments in relation to your superannuation benefits.

If you would like further information, or would like to discuss, please don’t hesitate to contact Megan Stubbersfield or Carl Norman on 07 3808 9990 or contact us online:

The information contained in this email is intended for general information only, contains general advice and does not take into account your individual investment objectives, financial circumstances or needs. Information provided on and available from this site does not constitute financial, taxation or other professional advice and should not be relied upon as such. It has been prepared based on the current taxation and superannuation laws. Before you make any financial decision, we recommend that you seek professional advice from a suitably qualified professional.