1. What is a Condition of Release?
   A Condition of Release is the term for accessing a person’s superannuation account balance. The most obvious example is reaching retirement age, but there are other reasons a person can access their superannuation.
2. How many Conditions of Release are there?
   There are several Conditions of Release, but there are 5 main ones that can result in a person getting early access to their superannuation I discuss here.
3. Totally and Permanently Incapacitated
   If you stop working because of injury or illness and are unlikely to be able to return to work, you could apply for your superannuation account balance on the grounds of total and permanent incapacity.It is important to note that applying for your account balance on the grounds of total and permanent incapacity is different to applying for a total and permanent disability benefit. A total and permanent disability benefit is an insurance benefit separate from your superannuation account balance. Please see our LAW TPD Insurance Fact Sheet about TPD benefits.
4. Severe Financial Hardship
   If you can’t meet your daily household living expenses and have been receiving Centrelink payments for about 6 months (26 weeks), you can apply to your superannuation fund to receive a maximum amount of $10,000 from your superannuation account balance. You can only receive one payment of $10,000 every 12 months from your superannuation fund.
5. Compassionate Grounds
   You might be able to use your superannuation money to pay for medical expenses for you or your dependents, home loan repayments to prevent you from losing your house, the cost of reasonable modifications to your car or house if you are disabled, or for other similar types of payments for you or one of your dependents. It is usual that
6. Terminal Illness
   If you have a terminal illness and can provide two medical certificates to show that your illness is likely to lead to your death within 24 months, you can apply to receive your superannuation account balance, and it will be paid tax-free. It is extremely important before taking these steps (which would close your account), that you ensure you are not losing your right to any insurance benefits that you may have attached to your superannuation account.
7. Retirement
   The Condition of Release that everyone works for: retirement! You reach what is referred to as your preservation age and you can retire and receive your superannuation. Your preservation age is dependent upon when you were born. The easiest way to explain this is as follows:
   If you were born before 1 July 1960, your preservation age is 55 years of age
   If you were born between 1 July 1960 and 30 June 1961, your preservation age is 56 years of age
   If you were born between 1 July 1961 and 30 June 1962, your preservation age is 57 years of age
   If you were born between 1 July 1962 and 30 June 1963, your preservation age is 58 years of age
   If you were born between 1 July 1963 and 30 June 1964, your preservation age is 59 years of age
   If you were born on or after 1 July 1964, your preservation age is 60 years of age
8. At age 60
   If you stop one job after turning 60, but then start a new job, you can access your superannuation that has accumulated under the first job, but the superannuation you receive from the new job only becomes accessible if you satisfy a further Condition of Release.
9. At age 65
   You are not compelled to take your superannuation when you reach the preservation age set out above. You are a long-time retired so, if you enjoy what you do and can keep doing it, then half your luck, as they say in the classics! You can, however, apply to receive your superannuation at 65 years of age, even if you are still working.
10. What else do I need to know?
    There is plenty to know that is not covered here. As the usual legal disclaimer goes – the information here is of a general nature because legal advice always depends on your circumstances.

Contact

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