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  SuperannuationWithdrawalsConditions Of Release - Compulsory Payout      Wednesday, 22 September 2021  
   

Conditions of Release - Compulsory Payout


From 10 May 2006

 

The compulsory cashing rule was abolished with effect from 10 May 2006.  This means that there will be no forced payment of benefits out of a superannuation fund after age 65.

 

People will be allowed to take their benefit as a regular income stream or keep their benefits in their superannuation fund indefinitely, taking out as little or as much of their benefits as they choose.  This change does not alter the requirement to pay out a member’s benefits upon their death.

 

 

From 1 July 2004 to 10 May 2006

 

Age of member

A benefit must be paid out:

Any age

- if the member has died.

65 - 74

- if the member was no longer gainfully   

  employed for at least 240 hours during the   

  previous financial year (Note 1).

Reaches age 75

- upon reaching age 75 (work hours are irrelevant) (Note 1).

 

Note 1

 

This does not apply to benefits resulting from mandated contributions made on or after the member reached age 65.  These benefits must be paid out if the member is age 75 or more and mandated contributions have ceased (and are not liable) to be made for the member.

 

Different rules applied prior to 1 July 2004.

 

 

This page was last edited on 29 December 2020

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