Condition of release
Definition of permanent incapacity:
The definition of permanent incapacity in subsection 10(1) of the Superannuation Industry (Supervision) Act 1993 (SIS Act) states that a member of a superannuation fund will be taken as suffering from permanent incapacity for the purpose of the SIS Act if the member's incapacity falls within the definition of permanent incapacity as defied in the SIS Regulations.
Superannuation Industry (Supervision) Regulations 1994 Act- Reg 1.03C defines a member of superannuation fund to be permanently incapacitated where the trustee of the superannuation fund is reasonably satisfied that the member is unlikely, because of ill-health (physical or mental) to engage in gainful employment for which they are reasonably qualified by education, training or experience.
A member's benefits may also be released if they satisfy that the member has temporarily ceased work due to physical or mental ill health that does not constitute permanent incapacity. In general, temporary benefits may be paid only from the insured benefits or voluntary employer funded benefits.
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: Thursday, September 17, 2020