Superannuation Conditions of Release

Whilst superannuation is recognised as a facility for the accumulation of wealth to support the funding of retirement, the law provides guidance as to what are the appropriate circumstances under which it can be accessed. These are generally referred to, as Conditions of Release.

Since the compulsory superannuation system was introduced in the late 1980s, there has been considerable debate – and legislative change – about the operation of the system. The legislative changes for quite a period were so regular that members started to lose confidence in the system.

Whilst the rate of change to the ‘rules’ has changed, the level of conjecture in the more recent debate has been unsettling for some. The more controversial proposals in recent times have been in relation to rates of tax concessionally applied; and how the income to be taxed is to be calculated.  This matter is expected to be resolved in the near-term.

Back to our topic for this article though, there are two classes of Conditions of Release. The first group are the standard age/ retirement conditions; and the second group are the exception conditions.

Standard conditions are –

1. Reaching preservation age, and retiring
2. Reaching preservation age, and transitioning to retirement
3. Ceasing a gainful employment after reaching age 60 (and up to age 65)
4. Turning age 65, even though not retiring

These situations allow for access to your superannuation funds and offer some strategic planning for retirement. Whilst they are conditions of release, access on attaining any of them is not compulsory. And if you elect to exercise the right to access through any of them, you will not be precluded from continuing to build the accumulation of your superannuation account. This will be the case even if you choose to access the funds in the form of a super-based pension.  In this latter case however, there will need to be a separation of the amount of the account to be used to fund the pension from the continuing accumulation account.

Exception conditions include –

1. Severe financial hardship
2. Compassionate grounds
3. Terminal illness
4. Temporary or permanent incapacity
5. First Home Super Saver Scheme
6. Departing Australia (for certain Visa holders) – and
7. Death

The linked Page on the ATO website provides more detail about the specifics of what constitutes eligibility to access to your superannuation account: these criteria are the basis of the guidance that you may also find on the website of your superannuation provider.

How do the above access provisions work?

Practical aspects of the relevant conditions above are dealt with after the next section of this article. Our treatment is in summary form and your individual circumstances need to be properly considered when intending to access your superannuation account(s).

There are/ have existed previously other conditions of release but that we are omitting from this article because they –

• are no longer available, or
• have minimal application in the community.

Super access strategy

When considering access to your super account, the range of options available give rise to a number of strategic considerations. These involve matters such as –

• Timing access
• Frequency of access – and
• Taxation implications of the access

– and are all subject to the conditions specified for the type of access you are seeking (see linked ATO website Page above). Engaging with a qualified, experienced financial planner in making this decision will ensure that your best interests will be served.

The practical aspects

• The ‘standard’ conditions

  • Reaching preservation age –
    generally speaking, this is currently on turning age 60: there are exceptions that should be discussed with your financial adviser.
  • Ceasing a gainful employment –
    this can be in the form of a retirement, but is more applicable to having held more that one paid employment exceeding 10 hours per week and finishing one of them permanently.
  • Turning 65 –
    this is an automatic, uncomplicated condition of release – but does not trigger necessary access to superannuation at that time. Other considerations may prove strategically beneficial for you to do so however.

• The Exception conditions

  • Severe financial hardship –
    there are two situations available: firstly, if under preservation age (60), up to $10,000 is available after you have been on Commonwealth Government income support payments for at least 26 continuous weeks – and still unable to meet reasonable living expenses. (Beware that there may be tax implications of this withdrawal.) The second is where you are at least age 60and 39 weeks and have continuously been in receipt of Commonwealth Government income support benefits for 39 weeks and are unemployed or working less than 10 hours per week. In this situation you may be eligible to draw in excess of the above limit. (the abovementioned tax will not apply in this case.)
  • Compassionate grounds –
    as the name suggests, this access is only available in somewhat extreme circumstances. Reference to the ATO website page linked here, should be made before you seek further advice in this regard. Note that these can include dealing with matters for family dependants. Medical treatment can be included in this category.
  • Health and Disability –
    terminal illness (where death is diagnosed by appropriate medical specialists within 24 months); and incidents resulting in permanent incapacity to resume gainful employment, may render eligibility to access superannuation. Those two scenarios will facilitate different types of access. Your eligibility to access your super in these circumstances is also treated on the ATO website Page linked above.

• The First Home Super Saver condition

  • First Home Super Saver Scheme –
    eligibility for this scheme that is intended to allow access prior to any other condition of release provisions are comprehensively dealt with on the ATO website Page linked here. Some basic requirements include that you –
    • Must be over 18 yoa
    • Never have had you name on a property title prior to entering the scheme (it must be for your First home)
    • The contributions you make must be your own
    • The contributions are limited to $15,000 per annum (less may be contributed in any year) – and
    • The maximum that can be accessed under this scheme, is $50,000.

Strategic superannuation management

Superannuation is a complex and valuable superannuation structure. There are many aspects as to how it can be used. Individuals may accumulate superannuation purely by virtue of the compulsory super scheme. They can also benefit from actively managing their super by strategically utilising the many legislative options provided.

The most appropriate step is to take professional advice from a qualified, experienced financial adviser, such as on the team at Continuum Financial Planners. To make an appointment with one of our team –

• phone our office on 07-3421 3456, or
• at your convenience, use the linked Book A Meeting

(This article was originally posted by us, in October 2025.)