A pensioner may choose to withdraw only part of the moneys contained within a product. In the case of a partial withdrawal from a super fund or a super bond, the balance of the investment remains a preserved benefit. A partial withdrawal from an ADF or a DA is taken to indicate genuine retirement and the balance of the investment is no longer considered a preserved benefit.
However, in the case of an ADF or DA where the partial withdrawal has been made under the "personal hardship" condition specified under the occupational superannuation standards, then the balance of the investment is to continue to be held as a preserved benefit. On the pensioner reaching pensionable age, the preserved benefit will be assessed under usual managed investment rules. That is, the product is assessed according to the provisions for managed investments from the date of attaining pensionable age and any earnings on that product which accrued before that date are not assessed as income at any stage whether or not that person had previously been receiving a pension payment.
In applying the provisions for managed products to preserved benefits, the commencement date of the product is taken to be the date at which the person first joined the super fund or purchased the super bond, ADF or DA. From 1 February , the value of any preserved benefit will be disregarded under the Asset Test. In the event of a partial withdrawal from a preserved benefit the balance of the investment in a super fund or a super bond will be maintained as a preserved benefit.
The balance held in an ADF or DA will no longer be considered as a preserved benefit and will be treated as an assessable asset except where the withdrawal was made under conditions of "hardship". Once a pensioner attains pensionable age, the preserved benefit will be treated as an assessable asset. Skip to main content.
Print version Send email. Amendments to Sections 35, 37B and 50 1 iiic of the VEA effective from 1 February have set new rules under the income and assets tests for the assessment of superannuation products according to the age of the person holding such products: Income Test: From 1 February the earnings on superannuation benefits which cannot be used until retirement will be disregarded under the income test until attaining "pensionable age" which is defined in Section 35 1 of the Act as 60 years for a male veteran, 55 years for a female veteran, 65 years for any other male and 60 years for any other female.
The following procedures are divided into five sections:. Assessment of Preserved benefits of non-pensionable age pensioners A review should be inserted for the date when the pensioner reaches pensionable age.
Reassessments on implementation That is, the earliest period in respect of which arrears can be paid is 1 February Client advice should be made on reassessment on implementation. Assessment of withdrawal of preserved benefit when pensioner not of pensionable age An example of the calculation of income using the steps outlined in 19 above is illustrated hereunder; Client is granted service pension invalidity on 1 June Assessment at pensionable age Commencement date of a preserved benefit is as follows:.
Other issues - switching The following example may help to clarify these switching rules:. Attachment A details the legislative changes and the interpretation of those changes. Section 35, Subsection 1 : -insertion under the definition of market linked investment "a superannuation benefit vested in a person held in a superannuation fund unless a superannuation pension funded by that benefit is presently payable to that person ".
Section 35, Subsection 10A : -insertion of the new subsection, "For the purposes of the definition of 'accruing return investment' in Subsection 1 , a superannuation benefit vested in a person that is held in a superannuation fund is to be taken to be an investment of that person, unless a superannuation pension funded by that benefit is presently payable".
Section 37B: -substitution of the Section with, " 1 Where: a a person becomes entitled to receive an amount that was, until the person became so entitled, a compulsorily preserved superannuation benefit; and b the person has not reached pensionable age; the person is, for the purposes of this Act, to be taken to receive one fifty-second of the assessable growth component of that amount as income of the person during each week in the period twelve months starting on the day when the person becomes entitled to receive that amount.
Section 50 1 : -insertion of a new subsection iiic which excludes holding of the value of any compulsorily preserved superannuation benefit under the assets test prior to pensionable age. Pensionable Age 5. Pensionable Age 8. Read our tips on optimising your processes. There are several ways you can shave your operational costs, improve cash flow and avoid the anxiety of being unable to pay your creditors - and this does not have to involve letting go of your staff.
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Restricted Non-Preserved Benefits which are made up of employment-related contributions made before 1 July Unrestricted Non-Preserved Benefits You are able to request this money at any time without restrictions.
For example, if you access your super after reaching your preservation age and retire before turning 60 , any super payments you receive will be subject to tax. Non-preserved super benefits can be either unrestricted or restricted. Unrestricted non-preserved benefits are the most common type. You will have these benefits if you are a member of a super fund and have satisfied a condition of release.
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Comments provided by readers that may include information relating to tax, superannuation or other rules cannot be relied upon as advice. SuperGuide does not verify the information provided within comments from readers.
Learn more. All information on SuperGuide is general in nature only and does not take into account your personal objectives, financial situation or needs. Learn more about SuperGuide. Reading time: 2 minutes On this page Types of non-preserved benefits How can I find out if I have unrestricted non-preserved super?
How can I withdraw unrestricted non-preserved super? The bottom line. Types of non-preserved benefits There are two basic types of non-preserved benefits: unrestricted and restricted. Unrestricted non-preserved benefits Unrestricted non-preserved benefits are the most common type of non-preserved benefits.
They include any benefits that may be paid on demand by your super fund because you have already satisfied a condition of release, such as: Being aged over the preservation age and retiring.
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