When it comes to the time to withdraw super fund benefits, it is possible to get all your money out and pay no tax. Again there are rules as to when and how you can get your money, but the best result is a tax free retirement. Compliance rules are a little complex, but with some help you can maximise your money quite easily.
The super in your fund is intended for your members’ retirement and generally can’t be accessed until then.
Preserved and non-preserved benefits
Most of the super held in your fund will be in the form of preserved benefits. These must be preserved in the fund until the time the law and your fund’s trust deed allows them to be paid.
Preservation age is generally the age that a person can access their super benefits once a condition of release has been met. It ranges from 55 to 60 years of age depending on the person’s date of birth.
Conditions of release
Voluntary cashing of preserved benefits generally depends on the member reaching their preservation age and meeting one of the conditions of release – for example, retirement.
Compulsory cashing of benefits is required only if a member dies. Your member’s benefits need to be paid out as soon as possible after the member’s death.
Early access to benefits
There are a few conditions of release that allow early access to super benefits before a member reaches their preservation age, but these occur only in limited circumstances, such as terminal illness or permanent incapacity.
How you get your benefits
Payment of benefits is usually as a lump sum or an income stream (that is, a pension).