For members of a superannuation fund to take money out of their super the member needs to meet a condition of release. The following are the conditions that will allow the member to access their super with “nil” cashing restrictions (there are a few more conditions of release however they do have a cashing restriction). When a member meets one of the conditions and notifies the Trustee their Super benefit will become unrestricted non-preserved. This means that the member can take this amount out at any time but he does not have to. It also means that the member can start an exempt current pension income stream (ECPI). (To read more about ECPI click here).
There are few more conditions that are less common.
The member’s death also creates a condition of release with “nil” cashing conditions however such an event creates a compulsory cashing as soon as practical after the member dies.
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Disclaimer and Warning
The information above is of a general nature only. It should not be used as a source to make financial decisions. It's also important to note that the legislation and figures related to this topic tend to change regularly and therefore the information above may not reflect the current status. We recommend that if you are looking for advice on this matter, you should contact us.