ATO Tax Talk March 2019: When can you legally withdraw your super?

This information is brought to you by the Australian Taxation Office. Interview with Jagjit Singh.

ATO Tax Talk Source: ATO

Superannuation is money set aside over your lifetime to provide for your retirement. Generally you can only withdraw your super when you reach preservation age and stop working.  You can withdraw your super:

• when you turn 65 (even if you haven’t retired), or
• when you reach preservation age and retire, or
• under the transition to retirement rules, while continuing to work.

There are also some very limited circumstances where you may be able to withdraw your super early such as compassionate grounds, severe financial hardship and certain medical conditions.

Mr Jagjit Singh, from ATO, bringing you Tax Talk every month on SBS Punjabi Source: Supplied

Do not take up any offers without first checking if they are legal. Severe penalties apply for illegally accessing your super early. If someone approaches you advising that you can withdraw your super early, without meeting certain conditions, you should:

• stop any involvement with the scheme, organisation or the person who approached you
• not sign any documents
• not provide them with any of your personal details

Phone ATO on 13 10 20 and advise us of your situation.

You will be required to pay interest and significant penalties on your super if you have accessed it illegally.

These penalties also apply to anyone that encourages illegal early access to super.

If you illegally access your super early, it’s included in your assessable income, even if you return the super to the fund later.

If you are a self-managed super fund trustee that has released super early, you also incur higher taxes and additional penalties, and can be disqualified as trustee. If you are disqualified, you are unable to operate as a trustee of an SMSF in the future also.

As a trustee, if you knowingly allow illegal access to super, you may incur penalties of up to $420,000 and jail terms of up to five years, or fines of up to $1.1 million for corporate trustees.

There may be other penalties, depending on your involvement in the scheme.

If you have been involved in a scheme, contact us immediately. We will take your voluntary disclosure and circumstances into account when determining any penalties.

For more information on the Superannuation and when you can access it legally visit ato.gov.au/illegalearlyrelease 

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