Generally your fund can only pay a member's super benefits when the member reaches their ‘preservation age’ and meets one of the conditions of release, such as retirement. The payment may be an income stream (also known as a super pension or annuity) or a lump sum, depending on the circumstances.
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Payments of benefits to members that have not met a condition of release are not treated as super benefits – instead, they will be taxed as ordinary income at the member's marginal tax rate. If a benefit is unlawfully released, we may apply significant penalties to you, your fund and the recipient of the early release.
Note that the operating standards, investment restrictions and other rules and regulations that apply to funds in the accumulation or growth phase, continue to apply when members begin receiving a pension from the funds.
Generally your fund can only pay a member's super benefits when the member reaches their ‘preservation age’ and meets one of the conditions of release, such as retirement. The payment may be an income stream (pension) or a lump sum.