Once you reach age 60 you can normally access your super tax free.
If you're aged 60 or over and withdraw a lump sum: You don't pay any tax when you withdraw from a taxed super fund. You may pay tax if you withdraw from an untaxed super fund, such as a public sector fund.
Age 60 or over and ceasing employment
You can access your super if you're aged 60 and over and you stop working, even if you subsequently get another job with another employer. As mentioned earlier, super payments are generally tax free once you turn 60.
No tax is payable on Pension withdrawals after the age of 60, however some tax may be payable on Pension withdrawals made between preservation age and 59. This means that where you are turning 60 in a particular financial year it may be financially advantageous to defer Pension withdrawals until you are over 60.
If you want a lump sum superannuation withdrawal at age 60, you will need to retire fully. You'll also need to submit a declaration to your super fund that you are retiring permanently, with no intention of returning to gainful employment - either part-time or full-time.
Super is a great way to save money for your retirement. It is generally taxed at a lower rate than your regular income. You typically pay 15% tax on your super contributions, and your withdrawals are tax-free if you're 60 or older.
You may be able to take your superannuation as a lump sum payment when you retire. This is usually tax-free from age 60.
Yes, provided you have reached the Age Pension age, you may be eligible for the Age Pension even if you have super savings.
You can access your super when you: reach your preservation age and retire. reach your preservation age and choose to begin a transition to retirement income stream while you are still working.
This obviously depends on what annual income you want to fund but if you want to be able to afford a comfortable retirement—which is an income of just over $48,000 a year for a single according to the ASFA Retirement Standard—then you need a balance of at least $500,000.
The minimum amount that can be withdrawn is $1,000 and the maximum amount is $10,000. If your super balance is less than $1,000 you can withdraw up to your remaining balance after tax. You can only make one withdrawal in any 12-month period.
Personal super contributions
You don't pay any contributions tax on non-concessional contributions. If you claim a tax deduction for personal super contributions, they become part of your concessional contributions. You may be able to claim a tax deduction on any personal super contributions you make until you turn 75.
How do I Claim a Tax Deduction for Personal Super Contributions? To claim a tax deduction for personal super contributions, you need to contribute an amount from your personal bank account into super and notify your super fund of your intention to claim a tax deduction.
Once you reach age 65, you can access your Super Benefit at any time whether you have retired or not. There are absolutely no restrictions to accessing your Super Benefit when over 65. 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 leave your super in accumulation phase, you are not required to make any withdrawals from it, even if you are retired. Your accumulation balance will simply continue to be invested and (ideally) increase in value over time. Keeping your super in accumulation phase does not prevent you from accessing it.
Assets Test
A single homeowner can have up to $656,500 of assessable assets and receive a part pension – for a single non-homeowner the higher threshold is $898,500. For a couple, the higher threshold to $986,500 for a homeowner and $1,228,500 for a non-homeowner.
Starting an income stream (super pension or annuity)
Investment earnings in super income streams are tax free, except in a transition-to-retirement pension where earnings are taxed at 15% until you retire or reach age 65. Read more about your super options on retirement.
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. The Low Rate Cap amount actually allows you to receive up to $230,000 of the taxable component tax-free. This is a lifetime (i.e. not annual) indexed cap.
If your super provider allows it, you may be able to withdraw some or all of your super in a single payment. This payment is called a lump sum. You may be able to withdraw your super in several lump sums. However, if you ask your provider to make regular payments from your super it may be an income stream.
Can I access super at 65 and keep working? Yes. You can access your super when you turn 65 regardless of whether you're still working. You can also make certain types of super contributions up until you turn 75, even if you're retired and drawing a super pension.
You can withdraw your super: when you turn 65 (even if you haven't retired) when you reach preservation age and retire, or. under the transition to retirement rules, while continuing to work.
WILL ACCESSING MY SUPER AFFECT MY CENTRELINK PAYMENT? If you withdraw money from your super fund, you must tell Centrelink within 14 days. Money withdrawn from super is not treated as income for a person receiving a social security payment.