Getting money out of super
A member's benefits in a regulated superannuation fund must be cashed as soon as practicable after the member dies. It is sufficient if, instead of being cashed, the benefits are rolled over as soon as practicable for immediate cashing.
Form in which death benefits may be cashed
A deceased member's benefits may be cashed in any one or more of the following forms:
- a single lump sum or
- an interim lump sum and a final lump sum or
- one or more pensions or annuities, each of which is:
- a superannuation income stream that is in the retirement phase
- paid to a person permitted to receive a death benefit income stream.
From 1 July 2017, instead of being cashed, a deceased member's benefits can also be rolled over as soon as practicable for immediate cashing.
Individuals permitted to receive a death benefit income stream
Where a member dies on or after 1 July 2007, a death benefit income stream may be paid to an individual who is a SIS dependant or child of the member.
In the case of a child of the member, the child must be:
- less than 18 years of age or
- if age 18 or over the child must:
- be financially dependent on the member and less than 25 years of age or
- have a disability of the kind described in subsection 8(1) of the Disability Services Act 1986.
Unless the child is disabled, death benefit income streams paid to a child must be cashed as a lump sum on the earlier of:
- the day on which the income stream is commuted, or
- when the term of the income stream expires (unless the benefit is rolled over to commence a new income stream) and
- the day on which the child attains age 25.
Last modified: Friday, November 16, 2018