Accessing your super
The Government has legislated limits on when you can access your superannuation so the savings system remains fair for everyone. Generally, any money saved into the superannuation system after 1 July 1999 (as well as all investment earnings) are considered ‘preserved’. This means that you cannot access it until you reach a particular 'preservation' age and you have retired from the workforce.
Superannuation benefits fall into three categories:
- Preserved: Must be retained in a fund until your retirement.
- Restricted non-preserved: Cannot be cashed in (even though it is not preserved) until you have terminated from the participating employer it was contributed through. Once you have terminated from the employer the benefit will become unrestricted non-preserved).
- Unrestricted non-preserved: Can be paid upon request.
There are certain exceptional circumstances under which you can apply for an early release of preserved and restricted non-preserved benefits. There is a summary of these conditions below.
Preserved benefits
Since 1 July 1999, all contributions and fund earnings, regardless of their source, are preserved within the superannuation system until you retire. Government regulations set out a minimum age for the release of benefits – known as the preservation age. Your preservation age depends on your date of birth (see below):
| Date of birth | Preservation age |
|---|---|
| Before 1/7/60 | 55 |
| 1/7/60 – 30/6/61 | 56 |
| 1/7/61 – 30/6/62 | 57 |
| 1/7/62 – 30/6/63 | 58 |
| 1/7/63 – 30/6/64 | 59 |
| After 30/6/64 | 60 |
Restricted non-preserved benefits
If you had an arrangement with an employer to contribute super for you before 1 July 1999, you may have benefits which are classified as non-preserved. So long as you are employed by that same organisation, access to that benefit is restricted and cannot be paid. After you stop being employed by that organisation contributions become unrestricted and can be paid out to you.
Unrestricted non-preserved benefits
Unrestricted non-preserved benefits are those to which no payment restrictions apply. Provided that the fund allows the payment, these benefits can be paid out to you on request, irrespective of your age, employment situation or financial position. These are generally benefits that you have already become entitled to receive but have voluntarily decided to keep within the superannuation system.
When benefits must be paid out
Effective from 20th May 2007, the compulsory cashing of superannuation benefits has been removed.
Conditions of early release
There are certain exceptional circumstances under which we are allowed to release your superannuation benefit early.
1. Small amounts
If you have less than $200 in your super fund and are no longer employed by the organisation that was making those contributions, you can apply to have your benefit paid out (less any applicable taxation).
2. Severe Financial Hardship
To be eligible for release of your benefit on the grounds of severe financial hardship, you will need to provide a letter from the relevant Government department (usually Centrelink), certifying that you have been in receipt of Commonwealth Income Support for at least 26 weeks continuously. You must also satisfy the Trustee by completing a Severe Financial Hardship form proving that you are unable to meet your reasonable and immediate living expenses from any other source and provide documentary evidence of this. You can only receive one payment in a 12 month period and the amount can not exceed $10,000 gross (before tax).
3. Compassionate Grounds
Under very limited circumstances, you can apply to the Australian Prudential Regulation Authority (APRA) to have your benefit or part thereof released on Compassionate Grounds. While APRA must be satisfied that the application meets the criteria for early release, the final decision lies with the Trustee. Grounds under which APRA will consider an application include:
- Medical treatment
- Medical transport
- Funeral assistance
- Palliative care
- Mortgage assistance
4. Permanent incapacity
Your benefit can be paid out if you become totally and permanently incapacitated. To have your benefit released early, you will need to provide us with medical certification from two different doctors (one must be a specialist) stating that you are Totally and Permanently Disabled, and in the opinion of the treating doctor, unlikely to ever work again in a job for which you are reasonably educated, trained or experienced. This medical certification does not automatically provide for payment of insurance claims. If you have taken out total and permanent disability insurance you should contact us about making a separate insurance claim.
5. Non-residents leaving Australia
If you entered Australia on an eligible temporary resident’s visa and later permanently left Australia you can request a Departing Australia Superannuation Payment (DASP). You can apply for this payment through the ATO. Please contact LUCRF Super prior to your departure so that the relevant documentation can be issued to you.
If you are an Australian or New Zealand citizen you are not eligible for DASP even if you hold an eligible temporary resident visa. This is because New Zealand and Australian citizens may retain a right to retire in Australia.
