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thesparrow(Newbie)Newbie
3 Jan 2022

Hi ATO community,


I am 60 years old and wish to access my superannuation as a lump sum this year in order to pay off our mortgage and allow my husband to cut back his work hours and embark on a path towards full retirement. I currently work on a casual basis for a single employer, approximately 3 days a week.


I understand I could still work up to 10 hours a week (ie not gainful) with this same employer to help them out at busy times -- true? Ideally I would also like to retain the flexibility to work more hours if husband finds he can't fully retire as soon as he had planned or he changes his mind about the timing.


Could I terminate the casual arrangement, access my super and then begin another similar arrangement with the same employer at a later date? Or would I need to find another employer or ensure the new arrangement differs from the old in some way?


Thanks.



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RachATO(Community Support)Community Support
5 Jan 2022

Hi @thesparrow,


If you've reached 60, you may be able to access your super if you meet two conditions:


1. You left a gainful employment arrangement with your employer after turning 60.

2. You have a genuine intention to not be gainfully employed (ie not working more than 10 hours per week) in the future.


So, in this case, your current arrangement with your employer would have to be terminated, and a new arrangement put in place. There's no need to change employer for this. 


As for flexibility in working more hours, most super funds ask that you sign a declaration, and part of this may include the intention of not working more than 10 hours per week in the future. Although you can take up new employment, at the time you're accessing your super, the fund needs to be satisfied that you have no intention of seeking gainful employment. 


It's also important that if you start a new employment arrangement after meeting the conditions to accessing your super, you wouldn't be able to access the preserved benefits for your new employment agreement until you meet another condition of release. You also have the option to choose a new super fund when you commence employment.

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Most helpful reply

RachATO(Community Support)Community Support
5 Jan 2022

Hi @thesparrow,


If you've reached 60, you may be able to access your super if you meet two conditions:


1. You left a gainful employment arrangement with your employer after turning 60.

2. You have a genuine intention to not be gainfully employed (ie not working more than 10 hours per week) in the future.


So, in this case, your current arrangement with your employer would have to be terminated, and a new arrangement put in place. There's no need to change employer for this. 


As for flexibility in working more hours, most super funds ask that you sign a declaration, and part of this may include the intention of not working more than 10 hours per week in the future. Although you can take up new employment, at the time you're accessing your super, the fund needs to be satisfied that you have no intention of seeking gainful employment. 


It's also important that if you start a new employment arrangement after meeting the conditions to accessing your super, you wouldn't be able to access the preserved benefits for your new employment agreement until you meet another condition of release. You also have the option to choose a new super fund when you commence employment.

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Clarkey(Newbie)Newbie
14 Aug 2024

Hi RachATO,


I am in a similar situation and I am getting conflicting advice on the subject. I want to withdraw a lump sum from my Super to pay off my mortgage when I turn 60 later this month and I'd like to know the rules around what I can and can't do in a "Ceasing Employment" situation.


I was of the understanding from Australian Retirement Trust that there are 2 conditions to accessing my Super when I turn 60. One is to cease employment with my existing employer OR the other to permanently retire and work no more than 10 hours per week.


I am looking to choose the option to Cease Employment as I still want to do some work in the future as situations may change with my husband being a sole trader.


I am under the impression that I could go back and work for my existing employer as long as it was in a completely different role. I am currently employed for 25.5 hours per week as a part time employee. My existing employer has offered me a role which is totally different to what I am doing now but as a Consultant to them NOT as an employee. I've also been approached by another business wanting me to do 5-7 hours per week for them too. So I'm thinking about setting up my own sole trader Consultancy business and billing these businesses under my ABN at an hourly rate. 


It's really confusing as I have received conflicting responses from different accountants and financial people and I want to ensure that what I propose doing is legal so that there are no repercussions that would affect receiving a super payout down the track with the ATO or Super Fund.  


Could you please tell me what my options are here in relation to a Cease Employment arrangement?


Many thanks!




Deb_ATO(Community Support)Community Support
19 Aug 2024

Hi @Clarkey


I can see what you mean. Now when you turn 60, that's meeting your preservation age, and being retired. The superfund itself makes the call if you meet that condition or not. They say yes or no to it. So, it'll be best to get further info about how to meet that condition directly from them.


I'll give you some tips. They need to be reasonably satisfied at the time you request the release you never intend to be gainfully employed again. You can return to work after retiring but when you first retire your intention to never be gainfully employed again must be genuine.


Gainful employment can be business income and full time or part time work from at least 10 hours a week.

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Aged over 60, can I access super and keep working with the same employer? | ATO Community