Generally, if you are aged 60 or over and eligible to access your super in full, all lump sum withdrawals will be received tax-free. If you are under age 60, you may be required to pay lump sum withdrawal tax, depending on the amount you withdraw and your superannuation tax components.
Once you've reached your preservation age and you retire from the workforce, you can access your super. However, if you access your super prior to turning 60, you may have to pay tax on any payments you receive, regardless of the type of payment you get (i.e. lump sum or super pension).
If you're under age 60 and withdraw a lump sum: You don't pay tax if you withdraw up to the 'low rate cap', currently $235,000. If you withdraw an amount above the low rate cap, you pay 17% tax (including the Medicare levy) or your marginal tax rate, whichever is lower.
You can get your super when you retire and reach your 'preservation age' — between 55 and 60, depending on when you were born. There are special circumstances where you can access your super early.
The preservation age is the age at which you can access your super either as a regular pension payment or by withdrawing a lump sum. This age has gradually been rising to 60 and is based on when you were born: If you were born on or after 1 July 964 your preservation age is 60 years.
It's all about your age. If you were born before 1 July 1960 you can get access to your super when you turn 55. If you were born later the age varies between 55 and 60. People aged 65 or over can access super and work as well.
Generally, if you are aged 60 or over and eligible to access your super in full, all lump sum withdrawals will be received tax-free. If you are under age 60, you may be required to pay lump sum withdrawal tax, depending on the amount you withdraw and your superannuation tax components.
You can withdraw your super if you're. 65 years or over, whether you keep working or not. 60 or over and change employers or temporarily stop working. Under 60 and have permanently stopped working, and you've met your preservation age.
Can I Transfer My Super to My Bank Account? You can only transfer your super to your bank account if you are eligible to access your super. To be eligible to access your super, you generally need to have at least met your superannuation preservation age.
Generally, you're able to access your super when you've reached: your preservation age and have permanently retired. your preservation age and are starting to transition to retirement (income stream) 60 and have ceased working in an employment arrangement.
Taking money from your pension. If you have a defined contribution pension, you can usually start taking an income or lump sums (or both) from the age of 55. But be aware that the earlier you start taking money out of your pension, the longer it might need to last.
If you are aged between 60 and 64 your Super Benefit is preserved until your "Retirement". There are absolutely no restrictions to accessing your Super Benefit when aged between 60 and 64 after you are "Retired". In this case your Super Benefit can be accessed as either a Pension or Lump Sum withdrawal.
Assume, for example, you will need 65 per cent of your pre-retirement income, so if you earn $50,000 now, you might need $32,500 in retirement.
If you are over 60, all lump sum withdrawals and income payments are tax-free. Under the age of 60, tax discounts are applied, and the amount you pay will be based on how much you withdraw, the 'tax components' of your super balance, and your marginal rate of tax.
You need to contact your super provider to request access to your super due to severe financial hardship. You may be able to withdraw some of your super if you are experiencing severe financial hardship. There are no special tax rates for a super withdrawal because of severe financial hardship.
To request a payment from your super or to transfer your account to another fund: Go to australiansuper.com and log into your online account • Choose 'Make a withdrawal from my super account'.
Can I withdraw super to pay off debts? Yes, but it's important to understand that early super payments made under the severe financial hardship provision can only be used to pay your reasonable living expenses. Funds are also only available for payments that are in arrears, not for future repayments or to clear debt.
Tax on withdrawals of taxable component
Your marginal tax rate or 32%, whichever is lower – unless the sum of the untaxed elements of all super lump sum benefits received under the super plan exceeds the untaxed plan cap. Amounts above the cap will be taxed at the top marginal rate.
The low rate cap (LRC) is a lifetime limit that applies to super lump sum benefits1 received from the taxable component2 by a person aged preservation age to 59. 3 The LRC is $235,000 in 2023/24.
If you withdraw money from your super fund, you must tell Centrelink within 14 days.
Generally you can only access your super if you have reached your preservation age and meet a condition of release (such as retiring or turning 65). Your preservation age is between 55 and 60, depending on your date of birth.