Conditions Of Release

To be able to withdraw benefits from an SMSF, a Member must meet a condition of release. Meeting these conditions (as explained below), means that benefits can be paid under the super laws. Note that the Deed of the SMSF may impose more stringent conditions for release. However, the Deed cannot impose less stringent conditions for release because an SMSF is governed under legislation.

 

The most common conditions of release for paying benefits are:

Reaching Your Preservation Age and Retiring
Transition to Retirement
Reaching Age 65

 

There are very limited circumstances where you may also be able to withdraw your benefits from your SMSF if you meet another conditions of release as stated by the ATO. The conditions are generally related to specific medical conditions or severe financial hardship. Please note the following conditions are more stringent and may require either confirmation from the ATO that you are

There are also some cases that allow Members early access to preserved benefits:

Compassionate Grounds
Severe Financial Hardship
 
Terminal Medical Condition
Temporary Incapacity
Permanently Incapacity
Temporary Residents Leaving Australia Permanently
Super Death Benefits (Inheriting Super)
Super Balance is Less than $200
First Home Super Saver Scheme

The ATO recently released a video explaining how a Member can access to their benefits in the SMSF under certain circumstances and what they should do if they meet a condition of release.

SMSF – Conditions of Release

For more info about when you can access your superannuation balance, please view the ATO guidance on Withdrawing your Super. For general guidance on the ATO rules on your SMSF, see our ATO Guidance information page.

 

  • Suz C

    Re: do I meet a condition of release?
    Is it sufficient to have left Australia and become a French resident to be able to cash in my super as a lump sum? I am 53 years old.
    Thanks. Sue

    • Hein Preller

      Suz,

      The most common condition of release is when you reach the age of 60 and no longer working. This means you can access your Super.

      Another condition is to leave Australia on a permanent basis. This is typically a backpacker that finished their stint here and go back home. For you to meet this condition, you have to give up your Australian citizenship. I guess the government’s plan with this is they don’t want people to go overseas, use their Super and then come back here and access the government pension.

      Trust this makes sense and gives you the guidance needed.

      • SJones

        Hi,

        Can i clarify this, if someone was born in Australia. Started a Corp SMSF, went overseas for holiday but decided to stay for residency in say an EU country. Firstly, an Aussie can’t give up AU citizenship until they have their EU passport, not just residency.

        But, when they do get their EU passport, if they gave up their AU citizenship – would they be entitled to take with them their entire Corp SMSF assets and capital?

        And they could only do this once they had given up their AU passport – not purely just by having an EU passport and being a non-AU resident?

        Is that correct? And what is the tax rate on the movement of funds/Assets out of AU

        • https://www.smsfwarehouse.com.au Superannuation Warehouse

          S.Jones,

          Our understanding is this part of the legislation is intended for backpacked leaving Australia and taking their super with them. If you were born in Australia you are not eligible to apply under this measure to withdraw your super.

          Even if you have departed Australia and are no longer a citizen you cannot apply for a Departing Australia Super payment under this measure.

          You can however withdraw your super if you have met a valid condition of release which is generally reaching the age of 60.

Contact Details


logo-grey

Peace Of Mind

We are Melbourne based with clients throughout Australia. Our SMSF administration service is mostly paperless. This enable us to charge a fair fee, resulting in a good value-proposition for you.

No Advice

Superannuation Warehouse is an accounting firm and do not provide financial advice. All information provided has been prepared without taking into account any of the Trustees’ objectives, financial situation or needs. Because of that, Trustees are advised to consider their own circumstances before engaging our services.