Super rules
Conditions of release: the legal events that unlock your super
By easySMSF, SMSF Specialist Team · Updated
Your super is preserved by law until a specific event — a condition of release — occurs. There are about a dozen of them, from the everyday (retirement, turning 65) to the exceptional (compassionate grounds, severe financial hardship). This page lists them all and flags what SMSF trustees must document before paying a cent.
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When can I access my super?
You can access preserved super only after meeting a condition of release. The most common are retiring after preservation age, ceasing an employment arrangement after age 60, or turning 65. Limited or special access may apply through a transition-to-retirement income stream, severe financial hardship, compassionate grounds, incapacity or terminal illness.
Full, limited and special conditions of release
The full access releases: retiring after preservation age with no intention of returning to gainful employment for 10 or more hours a week; ceasing an employment arrangement after age 60 (even if you start a new job); and turning 65, which releases everything regardless of work status. Each converts your preserved balance to unrestricted non-preserved — available as a lump sum, a pension, or a combination.
The limited release: a transition-to-retirement income stream, available from preservation age while you keep working. You can draw between 4% and 10% of the account balance each year, but lump sums are not allowed and fund earnings stay concessionally taxed at up to 15% until you retire or turn 65.
The hardship releases: severe financial hardship (26 weeks of income support plus inability to meet immediate family living costs, limited to $1,000–$10,000 once per 12 months if under preservation age) and compassionate grounds, which require an application to the ATO for defined purposes such as medical treatment, palliative care or preventing foreclosure. Terminal medical condition and permanent incapacity release the full balance, generally with concessional or tax-free treatment.
The rest: balances under $200 on leaving an employer, temporary residents departing Australia (taxed under the DASP rules), releases under the First Home Super Saver Scheme, and super paid following a member's death. For SMSF trustees, every payment must be supported by evidence of the release event — the member's retirement declaration, Centrelink records, ATO approval letters or medical certificates — kept on file for the auditor.
- Retire after preservation age, cease a job after 60, or turn 65 — the three full-access releases
- TTR pension from preservation age: 4–10% a year while working, no lump sums
- Severe financial hardship: $1,000–$10,000 once a year if under preservation age
- Compassionate grounds require ATO approval for a defined purpose before payment
- Terminal medical condition and permanent incapacity release the full balance
- SMSF trustees must retain evidence of the release event for the fund's auditor
First check your preservation age, then the pension mechanics at SMSF pension phase, SMSF pension guide and minimum pension payments.
Estate and death benefits: binding death benefit nominations. New to SMSFs? Start with the SMSF guide, review the SMSF compliance guide, or see our fixed-fee pricing.
Conditions of release at a glance
Full access
Retirement after preservation age, ceasing an employment arrangement after 60, turning 65, permanent incapacity or terminal medical condition.
Limited access
A transition-to-retirement income stream permits annual pension payments within prescribed limits while the member keeps working.
Special access
Severe financial hardship, compassionate grounds, departing Australia and other limited cases each have separate evidence and payment rules.
SMSF condition-of-release records
Before paying a benefit, trustees should identify the exact release condition, verify the evidence, record the decision and confirm whether cashing restrictions apply. The fund should retain the supporting declaration, approval or certificate, trustee resolution, payment record and pension documents where relevant.
Frequently asked questions
General advice warning
Figures shown are illustrative only and based on the inputs and assumptions you provide. They are general information, not personal financial product advice. Consider your objectives, financial situation and needs, and seek personal advice from a licensed financial adviser before acting. easySMSF does not hold an Australian Financial Services Licence (AFSL).