Can I Withdraw My Super? Rules for Early & General Access

Superannuation, often called ‘super,’ is Australia’s primary system for long-term retirement savings. It is a compulsory system where employers contribute a percentage of an employee’s earnings into a super fund. This money grows over time through investments managed by the super fund, aiming to provide financial support during retirement. The “preservation rule” ensures super funds are held until an individual reaches their preservation age and retires. This rule prevents early access, reinforcing superannuation’s purpose as a retirement savings vehicle. Penalties and fees may apply if super is accessed illegally.

General Access Conditions

Superannuation can be accessed upon reaching a certain age and meeting specific retirement criteria. The primary condition is reaching your “preservation age,” which varies by birth year. For example, it is 55 for those born before July 1, 1960, and gradually increases to 60 for those born after June 30, 1964.

Once preservation age is met, individuals can access their super if they formally retire from the workforce with no intention of returning to gainful employment. Alternatively, full access becomes available upon reaching age 65, regardless of employment status. Meeting these conditions allows for withdrawal as a lump sum, an income stream, or a combination of both.

Upon a member’s death, super benefits are paid to nominated beneficiaries or their estate. Early access is also permitted for terminal illness, requiring certification by two medical practitioners, one of whom must be a specialist, confirming a life expectancy of less than 24 months.

Early Access Conditions

Individuals may access super before general retirement conditions under specific circumstances. Severe financial hardship requires eligible government income support payments continuously for at least 26 weeks, and an inability to meet reasonable family living expenses. If preservation age plus 39 weeks is reached, qualification may occur with 39 weeks of cumulative income support and no gainful employment.

Compassionate grounds permit early release for specific needs, including medical treatment for life-threatening illness or injury, pain alleviation, or mental illness, along with related medical transport for the individual or a dependant. Other grounds include palliative care, expenses for a dependant’s death, funeral, or burial, home or vehicle modification due to severe disability, and preventing foreclosure or forced sale of a home. Applications are for unpaid expenses, though borrowed funds may also be considered.

Temporary incapacity allows super access as an income stream if a health issue temporarily prevents or reduces work hours. This condition accesses insurance benefits within the super fund to replace lost income. Permanent incapacity allows a lump sum withdrawal if a medical condition makes it unlikely for an individual to ever work again in a qualified job. Two medical practitioners must certify this.

Temporary residents departing Australia may be eligible for a Departing Australia Superannuation Payment (DASP). This applies if they accumulated super while working in Australia on an eligible temporary visa, their visa has ceased to be in effect, they have left Australia, and do not hold any other active Australian visa. Australian citizens, New Zealand citizens, or permanent residents are not eligible for DASP.

Applying for Super Release

The superannuation release process varies by general access (retirement) or early access condition. For general access upon reaching preservation age and retirement, contact your super fund directly. The fund requires proof of identity, a declaration of retirement, and proof of age to process the withdrawal.

For early release due to severe financial hardship, apply directly to the super fund. Provide documentation like evidence of eligible government income support payments received continuously for 26 weeks. Overdue bills, bank statements showing inability to meet living expenses, or a Q230 Financial Hardship letter from Centrelink or the Department of Veterans’ Affairs are also required.

Applications for compassionate grounds are handled by the Australian Taxation Office (ATO). Apply through your myGov account linked to ATO online services, navigating to the “Super” section and then “Compassionate release of super.” Required documentation includes medical reports, invoices, or quotes for medical treatment, palliative care, or disability modifications. For funeral expenses, evidence of relationship to the deceased and proof of costs are needed. The ATO assesses eligibility and, if approved, provides a confirmation letter for submission to the super fund.

For temporary or permanent incapacity, or DASP, contact your super fund or the ATO for application details and required documentation, which includes medical certificates for incapacity claims or visa and passport information for DASP.

Tax Implications of Super Withdrawals

Superannuation withdrawal taxation depends on age and access conditions. For individuals aged 60 or over, super benefits, whether lump sum or income stream, are tax-free.

For those under age 60, lump sum withdrawals are subject to tax on the “taxable component” of their super, while the “tax-free component” (after-tax contributions) is not taxed. The taxable component can be divided into taxed and untaxed elements.

Tax rates on the taxable component for those under 60 can be up to 22%, including the Medicare levy. A low-rate cap applies, meaning the taxable component up to a certain amount (e.g., $260,000 for 2025-26) may be tax-free or taxed at a lower rate if the individual has reached preservation age but is under 60. Amounts above this cap are taxed at marginal rates, with a maximum of 17% (including Medicare levy).

Income streams (pensions) received by individuals between preservation age and 60 are included as assessable income, though a 15% tax offset may apply. Withdrawals for severe financial hardship or compassionate grounds are taxed as normal lump sum withdrawals, applying the same tax rules for those under or over 60.

Upon a member’s death, superannuation death benefits paid as a lump sum are tax-free if the recipient is a “death benefits dependant” for tax purposes. This includes a spouse, de facto spouse, former spouse, or a child under 18. If the benefits are paid to a non-tax dependent, such as an adult child, the taxable component may be subject to a 15% tax, or up to 30% for any untaxed element. The Medicare levy may also apply, potentially increasing the rate to 17% or 32% if paid directly to non-dependants rather than through the estate.