Getting money out of super
Benefits are generally preserved (ie not accessible) in super until a condition of release has been met. Where a trustee of a regulated super fund or an ADF is reasonably satisfied that a member has met a condition of release with a nil cashing restriction, the member's preserved benefits and restricted non-preserved benefits in the fund at that time become unrestricted non-preserved benefits (ie accessible).
The preservation rules below are the minimum standards required. The governing rules of a super fund may impose stricter rules.
The preserved component of a member's benefit may comprise one or more of the following:
- Preserved amounts which are fixed dollar amounts as at 30 June 1999.
- Contributions from 1 July 1999.
- Rolled over preserved amounts.
- ETP rollovers from 1 July 2004 to 30 June 2007.
- Directed termination payments from 1 July 2007.
- All fund earnings from 1 July 1999.
Restricted non-preserved amounts (RNP amounts)
The RNP component of a member's benefit may comprise one or more of the following:
- RNP amounts which are fixed dollar amounts as at 30 June 1999 (these amounts are not indexed and any earnings on these benefits are preserved)
- Transferred or rolled over RNP amounts (subject to the rules of the receiving fund or RSA).
RNP amounts do not apply to any contributions made after 30 June 1999.
Accessing RNP amounts
RNP amounts are generally made up of undeducted contributions made to a super fund prior to 1 July 1999. This money can become an unrestricted non-preserved benefit and cashed out when the member has terminated gainful employment with an employer who has contributed to the same super fund prior to the member's termination of employment, or upon meeting a range of other conditions of release (eg retirement).
Unrestricted non-preserved amounts (UNP amounts)
- If a condition of release with a 'nil' cashing restriction is satisfied, the benefits will become UNP amounts and can be accessed at any time.
- The benefits can be taken in cash or as a pension or rolled over to commence an annuity.
- If UNP amounts (including an employer termination payment (ETP) received by a fund prior to 1 July 2004) are rolled over to another super fund or RSA, they will generally continue to remain unrestricted subject to the rules of that super fund or RSA.
- Will not be indexed and any earnings on these benefits will be preserved.
Priority of preservation components upon withdrawal
Where a client has satisfied a condition of release with a nil cashing restriction, all of their benefits in the fund will become unrestricted non-preserved. Where a client has
instead satisfied a condition of release with a cashing restriction, their benefits may consist of preserved benefits of restricted non-preserved benefits. Where this is the
case, any benefits that are cashed must be taken from:
- unrestricted non-preserved benefits, then
- restricted non-preserved benefits, then
- preserved benefits.
Cashing refers to the payment of benefits from the super system. For details of how benefits may be treated where a transition to retirement pension is commenced.
Last modified: Thursday, January 11, 2018