What Are The Requirements For Claiming Superannuation?

February 1, 2024    Workers Compensation Lawyers
What Are The Requirements For Claiming Superannuation?

After spending a large chunk of youth working, planning for retirement is one of the biggest markers of a happy and fulfilled life. Enjoying the benefits of the labor you did throughout your life when you finally retire is one of the main contributing factors to well-being. That is why understanding retirement plans and knowing how to claim them is crucial for a comfortable transition into retirement, which covers all your necessities and comforts.

Discussing your retirement plan with the best superannuation lawyers Perth is a great way to phase it out to the best of your needs. This article overviews all the requirements for claiming a superannuation for a secure retirement.

What is a superannuation?

Often called a “super,” superannuation in Australia is the savings system dedicated to pensions provided by the workplace. It takes a part of the money earned by employees and places it in an investment fund that matures and is made available to the employees after retirement. These involve compulsory payments of a proportion of the employee’s salary matched by the company that are deposited periodically into the investment account.

Since July 2023, this portion is 11% of the respective employee’s salary. It is important to note that this money is subject to a 15% concessional tax. The superannuation is claimed during retirement, and for people on a temporary working visa for Australia, the super is claimed at the time of departure. That is known as Departing Australia Superannuation Payment or DASP in short.

How is superannuation claimed?

As a citizen or a permanent resident of Australia, your super will be legally made available once you reach a certain age. This age must not necessarily be your retirement age. The following are the conditions you must meet before withdrawing your super.

  • Be 65 years of age, even if you have not yet retired

Retirement can come into effect once you turn 60 years of age, depending on the year in which you were born. It essentially implies that you’ve ceased your pursuit and services to gainful employment and are ready to withdraw from the workforce. However, you can withdraw your super even if you aren’t 65 but have reached your preservation age.

  • You reached your preservation age

Your preservation age, different from your pension age, is determined by your birth year. Depending on your birth year, your retirement comes into effect at different ages. Depending on when you were born between 1960 and 1964, your preservation age could start anywhere from 55 to 60 years.

  • Satisfy the terms for an early super

In exceptional circumstances, you can access your super earlier than your retirement or preservation age. These are:

  1. Compassionate grounds
  2. Medical requirements
  3. Hardship and incapacity grounds
  4. If you made voluntary contributions under the First Home Super Saver Scheme
  5. A Departing Australia Superannuation Payment or a DASP if you’re not an Australian citizen or a permanent resident.
  6. If your super balance amounts to less than AUD 200 or if you’ve “lost” your super account

All the above conditions need to be proved with documents and evidence supporting your situation. Guidance from a workers’ compensation lawyer in Perth can help you favorably present your case.

  • Benefits for super death

In case of death or demise, before you can withdraw your super, your nominee or beneficiaries are supposed to receive your superannuation funds.

When is it illegal to claim your super early?

Besides the above reasons, claiming your super earlier than your retirement or preservation age is illegal. In other words, you can only claim an early superannuation if you meet the criteria for early access. It is extremely important to be aware of any other early access schemes, considering there are scams that encourage employees to seek alternative methods of early super access. These are fraudulent and can often cost more than your super.

Summing up

Knowing when and how to claim your super is essential to empowering yourself as a worker or an employee. Being aware of any misinformation regarding early super is also important. To claim your superannuation as smoothly as possible, it is best to seek the guidance of the professional workers compensation lawyers Perth who are experts in the field.

Get in touch with leading and best superannuation lawyers in WA to transition into your days of rest with no hassle.

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