Superannuation is a long term savings structure to help fund your retirement.
Types of superannuation
Superannuation investments include:
- retail funds
- industry, corporate, public sector and other employer funds
- self managed superannuation funds
- small APRA funds
- retirement savings accounts
How it works
Each superannuation fund:
- has trustees who run it
- has its own written rules and terms
- must also follow government rules
Where the money comes from
Payments into your superannuation fund come from:
- your employer if you have a job
- you as an employee or self employed person
- the government in some cases
Over time these amounts build into a larger investment that earns income. Superannuation investments also have tax benefits.
When you retire
You can choose to:
- get the fund to pay you the money in your account:
- as a lump sum, or
- as a superannuation pension, or
- keep the money in superannuation
How it affects payments from us
While you’re under age pension age
We don’t count your superannuation in the income and assets tests if your fund isn’t paying you a superannuation pension. If your fund is paying you a superannuation pension, read about Income Streams.
When you reach age pension age
We count your superannuation
- in the assets test - the value is the balance on your latest statement
- in the income test under the deeming rules
The same rules apply to your partner and their super, even if they are not getting a payment from us.
If you’re of Age Pension age and can’t access your superannuation investment, you may be able to have it exempted from the income and assets tests.
When you withdraw it
Taking money out of superannuation doesn’t affect payments from us. But what you do with the money may. For instance we’ll count it in your income and assets tests if you:
- use it to buy an income stream
- put it in the bank
Getting it before you retire
Normally you can only take money out of your superannuation fund:
- after you reach preservation age, or
- if your funds are non preserved
With most superannuation funds you can’t get access to your money until you:
- retire from the workforce, and
- reach a set age
Preservation age is:
- 55 for people born before 1 July 1960
- slightly older each year after that
- 60 for people born after 30 June 1964
Early access to superannuation
You may be able to apply for early access. There are strict rules about who can do this. You need to talk to your superannuation fund first.
Read more about early release of superannuation on the Australian Taxation Office website.
To find out more: