Once your eligible and satisfy a condition of release, you can make a cash withdrawal from your Mercy Super account. Alternatively, you can rollover part or all of your Mercy Super account to another fund at any time.
Your super is a long-term investment designed to support you in retirement. Because of this, there are strict rules that govern when you can access your super which are known as a condition of release. You are eligible to make a cash withdrawal when you:
Your preservation age is generally between 55 and 60, depending on your date of birth. The table below provides your preservation age according to your date of birth.
|Date of birth||Preservation age|
|Before 1 July 1960||55|
|1 July 1960 to 30 June 1961||56|
|1 July 1961 to 30 June 1962||57|
|1 July 1962 to 30 June 1963||58|
|1 July 1963 to 30 June 1964||59|
|1 July 1964 or after||60|
Lump sum withdrawals from your Super Account are taxed as super lump sum payments.
If you are age 60 or over, then any withdrawals from your Income Account are tax free.
If you are under age 60, these payments are generally divided into tax-free and taxable components and are taxed according to your age as shown in the table below. The tax-free and taxable components are calculated using complex rules, but in general, the components depend on the source of the original contribution and the nature of the payment being made.
The tax on the taxable component of retirement lump sum payments is as follows:
|You are…||Your taxable component is…||Your tax-free component is…|
|Less than preservation age||Taxed at 20% (plus Medicare levy)||Tax-free|
|1 July 1Preservation age to age 59||The first $225,000 (2021/22)* is tax free. You pay tax at 15% on the balance (plus Medicare levy)||Tax-free|
|Age 60 and over||Tax-free||Tax-free|
If you’re eligible and are looking to make a cash withdrawal from your super, you will need to provide certified proof of your identity along with a copy of your bank statement along with your completed Benefit payment instructions form.
This is to make sure the instructions are coming from you and any payment is being made to a bank account in your name.
To enable us to rollover part or all of your Mercy Super account to another super fund you will need to provide a completed Benefit payment instructions form with the following details for the other super fund:
In addition, if you intend to rollover to a registered Self-Managed Super Fund you will also need a copy of evidence of a bank account in your fund’s name (such as a bank statement) and certified proof of your identity.