Trigger events: be careful drawing super benefits before age 60

The new simple super rules provide that a member can withdraw benefits:

(i)at age 55, if they have stopped work;
(ii)between ages 55 and 65 if they terminate an office or employment, which for example includes ending one part time employmentbut continuing another; and
(iii)at age 65, without a change of employment.

Benefits paid before age 60 may be taxed, subject to tax free concessions and 15% tax rebates. But benefits paid after age 60 will be tax free.

As a practical matter few clients withdraw their benefits before age 60. But if you do you should first speak to Brett Rose to clarify the tax results and make sure you do not pay too much tax. There are a number of simple strategies that can be used to reduce or elimate tax on benefits paid before age 60. Each case is different and specific advice should always be sought.