To be able to access benefits from an SMSF, a Member must meet a condition of release under Superannuation law preservation rules. The Trust Deed sets out the rules of the SMSF’s and can be restrictive, so it is possible that a benefit can be payable under the super laws but not under the rules of your SMSF. In order for a Member to withdraw from the contributions to superannuation, one or more of the following conditions of release must be satisfied:
- Has reached their preservation age and retires permanently from the workforce
- Has reached their preservation age and begins a transition to retirement income stream
- Reaching the age of 60 and retired
- Reaching the age of 65 (even if Member has not yet retired)
- Terminating gainful employment
- Permanent incapacity
- Temporary incapacity
- Severe financial hardship
- Compassionate grounds (e.g. medical treatment, palliative care, funeral expenses and disability aids)
- Terminal medical condition
- Super Balance Less than $200
- First Home Super Saver scheme
Eligibility criteria and how to apply for a condition of release of Super
To determine whether you are eligible for a condition of release of Super, click here. For more information about tax applied to these conditions, please view the ATO guidance on Withdrawing your Super. For more information about how to start your pension, please refer to our pension page.
Frequently Asked Questions
Am I allowed to access my super balance if I become disabled?
Yes, superannuation benefit can be accessed for disability under a Permanent Incapacity condition of release. Referring to SIS Regulation 1.03C, a Permanent Incapacity condition of release is met if the Trustee of the Fund is reasonably satisfied that the Member is unlikely, because of physical or mental ill-health, to ever again engage in gainful employment for which the Member is reasonably qualified by education, training or experience. In addition, the Tax Legislation notes allows for Concessional Tax treatment if there are at least two medical certificates that confirms the Member’s disability.
Members have the following options when accessing their benefits under Permanent Incapacity condition:
- Lump sum withdrawal or roll over to another super fund
- Lump sum withdrawals may be taxed depending on the Member’s age and working conditions. However, a Tax-free uplift can be applied to allow a concessional tax treatment for a lump sum withdrawal.
- Retain your Member balance in accumulation phase for future withdrawals
- Commence a Pension income stream
In addition, the Member can also use a combination of the three options listed above.
