How would you feel if you were having a Zoom meeting with your accountant and they asked “how would you like to save more than $5,000 in income tax over the next six months?”
To legally access your super in Australia you must satisfy a condition of release. Different conditions of release have different payment conditions and tax implications.
When couples divorce, super is often overlooked in favour of more readily accessible assets. While that’s understandable, ignoring super can result in serious financial disadvantage in the long term. Get the lowdown on what happens to super in the event of a relationship breakdown.
Australia’s super system has lots of rules – many of which have significant penalties if you breach them – but not every rule applies to everybody at every age.
Non-preserved super benefits can be either unrestricted or restricted. Unrestricted non-preserved benefits are the most common type. You will have these benefits if you are a member of a super fund and have satisfied a condition of release. If you do, you’ll be able to access your super on demand as either a lump sum or a pension.
Question: I’m an Australian citizen and want to retire in Italy when I’m 52. Can I access my super because I don’t plan on working again in Australia?
Total and permanent disablement (TPD) insurance pays a lump sum if you become permanently disabled and are unable to work again. It basically insures you against the risk that your ability to accumulate super (retirement income) is cut unexpectedly short.
Ceasing employment after you reach the age of 60 is a “condition of release”, or one way you that you can access your super in Australia. Ceasing employment means leaving a job, even if you get a job with another employer.
To access your super, you need to have reached your preservation age and met a condition of release, one of which can be retiring from the workforce. Your preservation age is between the ages of 55 and 60, depending on your date of birth.
You can access your super in Australia when you turn 65. It is the most straightforward condition of release. To apply for your super benefits you should contact your super fund.
You can access your super benefits early under Australian law if you have a fund balance of less than $200 and your employment has been terminated – whether you lose your job or you quit it.
The Departing Australia superannuation payment (DASP) is available to departed temporary residents who worked and earned super in Australia. It is not available to permanent Australian residents, nor for Australian and New Zealand citizens.
You can access super benefits early due to temporary incapacity under Australian law, provided that the benefits come from specific sources.
You can access your super benefits early due to permanent incapacity under Australian law, provided you meet the eligibility conditions.
Australian super law allows for the full early release of your super if you’re diagnosed with a terminal medical condition, provided your super fund allows it.