4.8.2.30 Assessing Withdrawals from Superannuation

Summary

This topic covers the treatment of:

  • lump sum withdrawals from superannuation, and
  • lump sum payments from other funds.

Note: Where superannuation assets are used to purchase an income stream, assessment is made under the income stream rules, refer to 4.9.

Lump sum withdrawals from superannuation

Lump sum amounts withdrawn from a superannuation fund, where the amount comprises a return of a person's interest in a superannuation fund, are not assessed as income. Depending on what the income support recipient uses the withdrawn amount for, further assessment may be necessary.

Lump sum payments from other funds

Some funds, including overseas funds, are not a superannuation fund for social security purposes because they do not meet the requirements at SSAct section 9(1). These funds are treated as managed investments.

Lump sum amounts withdrawn from these funds are assessable as income for 12 months under SSAct section 1073 unless the person can show that the amount withdrawn consists ENTIRELY of the person's own contributions and returns on those contributions.

Policy reference: SS Guide 4.8.1.20 Types of Superannuation Funds, 4.9 Income streams

Last reviewed: 20 October 2015