In this guide
Now that the usual minimum age to access super has reached 60, it’s uncommon to make a withdrawal prior to that milestone. However, you may need early access to your super because of hardship, injury or illness, you could be receiving a benefit after the death of someone close to you, or perhaps you have some non-preserved money in your account.
Whatever the situation, it’s important to understand the tax implications.
So, just what are the taxes that could apply if you withdraw super before you turn 60?
Need to know: Different tax rules apply when you access your super over age 60 or if you are a temporary resident and access your super after you leave Australia.
Want your super benefit? Then get ready to meet a condition of release
As your super savings are designed to be used in your retirement, there are strict rules governing your ability to withdraw them before you reach your preservation age, which is 60 for anyone currently aged 60 or below.
Preserved super can be accessed under age 60 in limited circumstances such as if you are permanently disabled or suffering severe financial hardship. These circumstances are called conditions of release.
If you made voluntary contributions to super before 1 July 1999, you may have some non-preserved super that can be withdrawn at any time. If you have any non-preserved money, it will be shown on your annual statement and online balance summary.
Learn more about conditions of release.
Good to know
If you are currently receiving payments from Centrelink, check before you access your super, as it may affect your entitlement to a benefit and the amount you receive because many government benefits are based on your taxable income.
To find out more, visit the Services Australia website to find the Centrelink phone number to that applies to your situation.
Leave a Reply
You must be logged in to post a comment.