Accessing your super
Super is designed to help you save for your retirement. With this in mind, the Government places restrictions on when you can withdraw your super and there may also be tax implications. Before making any changes to your super it’s a good idea to speak with a financial adviser.
You are able to withdraw your super for a variety of circumstances, which include if you:
- are 65 years or over, whether or not you are working
- cease gainful employment with an employer on or after age 60, without necessarily retiring permanently
- are under 60 and have permanently stopped working, and you’ve met your preservation age as seen in the table below.
- reach your preservation age and choose to begin a transition to retirement income stream while you are still working
| When you were born | Preservation age |
| Before 1 July 1960 | 55 |
| 1 July 1960 – 30 June 1961 | 56 |
| 1 July 1961 – 30 June 1962 | 57 |
| 1 July 1962 – 30 June 1963 | 58 |
| 1 July 1963 – 30 June 1964 | 59 |
| After 30 June 1964 | 60 |
Call 1300 033 166 or Request an Appointment to find out more information regarding withdrawal circumstances.
These rules are referred to as ‘conditions of release’. You may or may not be required to pay tax on your benefit depending on your circumstances. You can find out if you have a tax-free amount for withdrawing by logging in to SuperOnline and clicking on the ‘Balance’ tab. Your benefits are generally preserved until you meet a condition of release. For more information visit the ATO.
Accessing your super early
Under certain circumstances, you may be able to access your super early. If any of the below circumstances apply to you, you may wish to contact us for more information (as well visit the ATO website). If you make a withdrawal from your super, it could impact your insurance cover. It may also have tax and other implications. See below for further details.
Withdrawing your super can have tax implications as well as implications on your longer-term super benefit. These withdrawals may also be subject to tax. You should consider receiving help before you make a decision to withdraw any of your super. You can speak with an Adviser from TelstraSuper Financial Planning to get advice on how your withdrawal may impact you:
Call 1300 033 166 or Request an Appointment to find out more.
ATO Warnings
The following ATO link speaks to the dangers of attempting to claim early access to superannuation illegally, warns of illegal early access schemes and provides guidance on what you should do if you are approached by a promoter of such schemes.
A few things to remember before withdrawing your super are:
You may be able to choose to receive your super as a income stream, a lump sum or a combination of both.
The age the Government allows you to withdraw your super is different to the age you can apply for the Government Age Pension, which is 67* years.
*On 1 July 2021, the Age Pension age increased to 66 years and 6 months for people born from 1 July 1955 to 31 December 1956, inclusive. If your birth date is on or after 1 January 1957, you’ll have to wait until you turn 67. This will be the Age Pension age from 1 July 2023. Making a withdrawal may affect your Centrelink payments and insurance cover so it’s important to get advice before doing so.
Tax considerations and impacts on withdrawals
If you are aged 60 or over, lump sum withdrawals and income payments are generally tax-free. Under the age of 60, the amount of tax you pay will be based on things such as how much you withdraw, the ‘taxable components’ of your super balance, and your marginal rate of tax. For more information read more here.
| AGED UNDER 60 |
AGED 60+ | |
| Income payments from pension accounts |
Lump sum Withdrawals from super or pension accounts |
Withdrawals from pension accounts and super accounts |
| Taxable component*: your marginal tax rate plus Medicare Levy, less a 15% tax offset. |
Taxable component*: the first $230,000‡ is tax free. The balance is taxed at 17%‡. |
No tax payable |
|
Your super balance is divided into two components, - tax free and taxable. These are calculated based on the type of contributions made to your account. |
Log in to your account and get a ‘benefit quote’ to understand how much of your super will be tax free or taxable. |
|
* If your taxable component includes an untaxed element, additional tax may be applied to that element.
‡ This amount is reduced by any amount previously applied to this threshold.
Withdrawal impacts on Centrelink
If you access your super, it may affect your Centrelink payments. To find out more:
- phone Centrelink on 13 23 00
- visit the Services Australia website.
- speak to a TelstraSuper Financial Planning Advisor on 1300 033 166
Insurance implications when withdrawing
If you are making a withdrawal, you should consider whether your withdrawal will affect your insurance cover including whether it will result in the cessation of your insurance. If there are insufficient funds in your account to cover your insurance premiums after your withdrawal any insurance cover you have through this account will cease. Please contact us for further information.
Payment when you die
When you die your super will be paid to one or more of your dependants or your legal personal representative. They'll receive your super balance and any death benefit insurance cover you may have.
Who receives your death benefit?
You can nominate which of your dependants and/or legal personal representative you wish to receive your super in the event of your death.
If you make a binding nomination, the Trustee must follow your wishes provided certain conditions are met.
If you make a non-binding nomination, the Trustee will take this into consideration in determining who receives your benefits in the event of your death.
If you do not make a binding nomination, the Trustee has discretion in deciding who receives your benefits in the event of your death.
Find out more about the differences between binding and non-binding beneficiary nominations.
How to make a claim?
When you die, your family or legal representative should contact TelstraSuper's Insured Benefits Group who will help provide them with the forms that need to be completed in order for your benefit to be paid. They can call us on 1300 033 166 or download this factsheet.
For more information on what happens to your super when you die and the importance of nominating beneficiaries, please visit our pages on estate planning.
How to make a withdrawal
If you’re withdrawing from a TelstraSuper RetireAccess® account, complete this form
If you’re withdrawing from a Personal Plus or Corporate Plus account, complete this form
If you have NOT met a condition of release and want early access to your super please contact TelstraSuper by calling 1300 033 166
If you have retired or plan to retire and wish to join TelstraSuper RetireAccess please complete this form – Income Stream Application form
If you want to consolidate your existing income stream and accumulation account into a new income stream please complete this form – Reinvestment Application
Withdrawal application key points to consider - prior to withdrawing you may need to put in notice of intent to claim before withdrawing (if applicable)
Making a withdrawal may affect any Centrelink benefits you are currently receiving and/or have tax implications. Before completing any type of withdrawal of benefits form you should contact Centrelink and/or your financial planner or accountant for more information.
If you are making any withdrawal, you should consider whether your withdrawal will affect your insurance cover including whether it will result in cessation of your insurance.
If there are insufficient funds in your account to cover your insurance premiums after your withdrawal any insurance cover you have through this account will cease.
When completing any type of withdrawal of benefits forms please remember to:
- Provide proof of your identity, please see the following Proof of ID guide
- Provide any supporting documentation such as bank account information and super fund information. If you are signing this form on behalf of another person, you will need to complete and attach an Authorised Third Party Representative Identification form and include any certified documents as required.
Time taken to process your withdrawal application
Your withdrawal will be processed within 4 business days provided we have everything we need and your application for withdrawal is approved. Please ensure you complete the relevant form correctly and provide any supporting documents when you submit your application, as this will help us work through your application as quickly as possible. We’ll contact you if we need further information or documentation from you and send you an SMS notification when your withdrawal has been processed.
General and simple personal advice is included in the cost of your membership
Our goal is to help you achieve a financially secure future which is why we offer you access to general and simple personal advice about your TelstraSuper account over the phone at no additional cost. We can help you:
- optimise your super so it's working hard for you
- choose investment options
- review your insurance cover.
Call 1300 033 166 or Request an Appointment
Need more comprehensive advice?
Should you need comprehensive personal advice you have access to an Adviser from our TelstraSuper Financial Planning team. We provide tailored, value for money, financial advice on a range of topics that can help you maximise your savings throughout your life stages. Advice fees relating to your super may be paid for through your TelstraSuper account if certain criteria are met, please see below for more information.
Any general advice on this website has been prepared without taking into account your objectives, financial situation or needs. Before you act on any general advice on this website, you should consider whether it is appropriate to your individual circumstances. Before making any investment decision, you should obtain and read the relevant product disclosure statement which is available on the Website or by calling 1300 033 166 between 8.30 am and 5.30 pm (AEST) Monday to Friday. You may wish to consult an Adviser before you make any decisions relating to your financial affairs. To speak with an Adviser from TelstraSuper Financial Planning call 1300 033 166.