When Can Mature Jobseekers Access Super?
For mature-aged Australians receiving JobSeeker payments, accessing superannuation early can supplement cash flow and help meet living expenses. However, strict conditions of release and potential impacts on government benefits need to be carefully considered. This guide outlines eligibility criteria, release conditions, and strategies for navigating this complex area.
JobSeeker Payment Overview
JobSeeker Payment provides fortnightly income support for individuals actively seeking work. Key eligibility criteria include:
Age: Applicants must be at least 22 years old but under 67.
Means Test: Applicants must meet income and asset thresholds, which consider both individual and partner earnings.
Residency: Applicants must satisfy Australian residence requirements.
Mutual Obligations: From age 60, recipients can meet mutual obligations by completing 30 hours per fortnight of approved voluntary or paid work. Recipients must still accept any offer of suitable paid work, meaning individuals aged 60-64 cannot satisfy the permanent retirement condition of release while receiving JobSeeker.
Conditions of Superannuation Release for Mature Jobseekers
Several conditions allow individuals in their early 60s to access superannuation. These include:
- For individuals aged 60 and over, ceasing gainful employment satisfies the retirement condition of release.
- Once satisfied, super accrued up to the termination date becomes unrestricted non-preserved.
- Future contributions and earnings remain preserved.
Example: Sandra, aged 62, ceased gainful employment at 60. Her $480,000 super balance at that time is unrestricted non-preserved, allowing her to commence a pension to supplement her JobSeeker Payment.
Severe Financial Hardship:
Eligibility:
- Receive income support payments for at least 26 consecutive weeks.
- Prove an inability to meet reasonable and immediate living expenses.
Access:
- Withdraw up to $10,000 tax-free per 12-month period.
- Withdraw the entire balance if aged 60 and have received 39 cumulative weeks of JobSeeker Payment after turning 60.
Example: Wendel, aged 60, withdrew $10,000 under severe financial hardship to meet family expenses. Later, after reaching 60 + 39 weeks of JobSeeker, he accessed his entire super balance to commence an account-based pension.
Transition to Retirement Pension (TTR):
- Allows individuals to access 4-10% of their super balance annually while still working.
- Payments are tax-free if aged 60 or over.
- Super balances are assessed for JobSeeker’s income and asset tests.
Example: Alexis, aged 60, commenced a $260,000 TTR pension, providing $26,000 annually while retaining her JobSeeker Payment eligibility.
Reaching Age 65:
- All super becomes unrestricted non-preserved at 65, regardless of work status.
Compassionate Grounds:
- Access is available for specific unpaid expenses, such as medical treatment or preventing foreclosure.
Example: Tori, aged 60, accessed super on compassionate grounds to cover mortgage arrears, preventing foreclosure of her home.
Planning Considerations for Mature Jobseekers
Impact on Government Benefits:
- Withdrawn super funds may reduce JobSeeker Payment if not immediately spent.
- Super left in accumulation is exempt from means testing until Age Pension age.
Optimizing Withdrawals:
- Carefully structure withdrawals to minimize impact on benefits and preserve super for long-term needs.
Rebuilding Super:
- Salary sacrifice and co-contributions can help rebuild super balances after financial stress.
