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Condition of release

Accessing preserved superannuation benefits

Section: 7.2

7.2. Accessing preserved superannuation benefits

The preservation rules for superannuation are applied to superannuation funds by provisions of the Superannuation Industry (Supervision) Act 1993, (the SIS Act) and Part 6 of the Superannuation Industry (Supervision) Regulations 1994 (the SIS Regulations). The rules generally require members' benefits to remain within the superannuation system until the member retires from the workforce at or after the preservation age which applies to the member.

This applies to APRA regulated superannuation fund or an approved deposit fund (ADF), and to an exempt public sector superannuation scheme (EPSSS) to the extent that it is involved in a rollover or transfer to or from a superannuation fund.

Early release of superannuation refers to the limited capacity for superannuation funds to pay benefits that would otherwise be preserved in the fund.

There are three categories of superannuation benefits for preservation purposes:

Preserved benefits

All contributions made by or on behalf of a member, and all earnings since 1 July 1999, are preserved benefits. Preserved benefits may be cashed voluntarily only if a condition of release is met and subject to any cashing restrictions imposed as part of the condition of release.

Restricted non-preserved benefits

Restricted non-preserved benefits cannot be cashed until the member meets a condition of release specific to these benefits. Generally, they stem from employment-related contributions (other than employer contributions) made before 1 July 1999 or to rolled-over employer termination payments made before 1 July 2004 and can be cashed once the employment they related to has been terminated.

Unrestricted non-preserved benefits

These benefits do not require a condition of release to be met and may be paid on demand by the member. They include, for instance, benefits for which a member has previously satisfied a condition of release and decided to keep the money in the super fund.

This technical resource is intended for the use of financial advisers only. It is current as at the date of publication but may be subject to change. This publication has been prepared without taking into account a potential investor's objectives, financial situation, needs or objectives. Before making a recommendation based on this material, you should consider its appropriateness based on the client's objectives, financial situation and needs. Rainmaker Group is not a registered tax agent under the Tax Agent Services Act 2009. Your client should refer to a registered tax agent before relying on information published herein that may impact their tax obligations, liabilities or entitlements.

Last modified: Monday, July 12, 2021