Releasing Superannuation

As well as providing incentives such as lower tax rates, on superannuation contributions, the Australian Government also places strict rules on accessing superannuation savings prior to retirement to ensure that superannuation continues to accumulate over a person’s life time.

You can only access the whole of the preserved component of your superannuation if you satisfy a condition of release, which is the earliest of the following events: - you reach 65 years of age, whether you are still working or not, - you permanently retire on or after your preservation age (see table below), - you reach your preservation age and wish to draw a transition to retirement income stream from your super fund, - you cease employment with an employer on or after reaching age 60 (although you may continue to work in another employment arrangement), - you ceased employment with an employer before age 60, but you have since reached age 60 and the Trustee is reasonably satisfied that you will not return to work, - you suffer permanent incapacity (specific conditions and criteria apply).

Preservation Age

If you have reached your preservation age, please provide TIC Super with certified (must be evidenced by a Justice of the Pease or solicitor as detailed on the form) evidence of your age, such as a copy of your birth certificate or driver’s licence.  If you are aged 55–60 and wish to have any preserved benefit paid directly to you, please ensure you complete the declaration (on the application for payment form) stating that you have retired permanently from the workforce.

Outside of reaching your preserves age, you may be able to access all or part of your preserved component. Preserved funds are all contributions made to a regulated superannuation fund, regardless of the source of the contributions, and all earnings in respect of those contributions since 1 July 1999. They are termed ‘preserved funds’ because these amounts must remain in the superannuation system until you meet a condition of release.  

These include:

- the release of your account balance if you suffer from a terminal medical condition (specific conditions and criteria apply),
- you are temporarily incapacitated and have Income Protection insurance through the Fund, in which case the Income Protection insurance amount can be accessed,
- you meet the criteria for early release on specified compassionate grounds, subject to the Australian Prudential Regulation Authority’s (APRA) approval and conditions,
- you meet the eligibility requirements for severe financial hardship (subject to Trustee approval and conditions),
- you are an eligible temporary resident and have permanently left Australia (limited to certain visa categories and not available to New Zealand citizens),
- you (or the ATO) provide a valid release authority to the Trustee for payment of tax on excess concessional or non-concessional contributions,
- you terminate employment with an employer-sponsor of the Fund, and your preserved benefit at that time is less than $200,
- you were previously classified as a lost member who is found, and the value of your benefit in the Fund, when released, is less than $200.

While most of your superannuation will probably be preserved, your account may also include non-preserved components if you had superannuation prior to 1 July 1999. Non-preserved components can be either restricted or unrestricted:

- Restricted non-preserved benefits – whilst these benefits are not preserved they will not be released until you meet a condition of release.
- Unrestricted non-preserved benefits - Any unrestricted non-preserved benefits in your superannuation account can be paid directly to you at any time, without a change of employment.