Conditions of release (COR) - Technical overview - 1

COR	Definition	Comments
Retirement	From preservation age: If an arrangement under which the member was gainfully employed has ended, and the trustee is reasonably satisfied that the member intends never to be gainfully employed for at least 10 hours per week, or From age 60: If an arrangement under which the member was gainfully employed has ended after turning age 60.	No cashing restriction Either definition can be relied on from age 60
Attaining age 65	N/A	No cashing restriction
Attaining preservation age	N/A	Limited cashing restriction: Benefit can only be taken as a TTR or non- commutable income stream (see page 60).
Death	N/A	No cashing restriction Must be cashed as soon as practicable following the member’s death Benefit cannot be rolled over
Permanent incapacity	Physical or mental ill health where the trustee is reasonably satisfied the member is unlikely to engage in gainful employment for which the member is reasonably qualified by education, training or experience.	No cashing restriction
Terminal medical condition	The member has an illness or injury, certified by two registered medical practitioners, that is likely to result in death within 24 months of certification date. At least one of the medical practitioners specialises in an area related to the illness or injury. For each certificate, the certification period must not have ended.	No cashing restriction. Benefits cannot be rolled over. Benefits that accrue during the certification period are also considered unrestricted non- preserved.
Temporary incapacity	Physical or mental ill-health that has caused the member to (temporarily or otherwise) cease gainful employment, but does not constitute permanent incapacity.	Limited cashing restriction. Benefits (other than member-financed and mandated employer-financed benefits) may be accessed as a non-commutable income stream to continue the pre-temporary incapacity gain or reward for period of incapacity.
Severe financial hardship	1. Trustee is satisfied that the member: is and has been continuously on Commonwealth income support benefits for 26 weeks, and is unable to meet reasonable and immediate family living expenses or 2. The member has reached preservation age and 39 weeks and trustee is satisfied that the member: has been on Commonwealth income support for a cumulative period of 39 weeks since reaching preservation age; and is not gainfully employed for at least 10 hours per week.	Limited cashing restriction: If definition 1 applies: Access to a single lump sum amount of between $1,000 and $10,000 per annum If definition 2 applies: access to entire benefit
Compassionate grounds	On application to the ATO benefits may be released to: pay for medical treatment or medical transport for member or dependant make loan repayments to prevent foreclosure or mortgagee power of sale of principal residence modify principal residence for severe disability needs of member or dependant meet member’s palliative care expenses pay expenses for dependant’s palliative care, death, funeral or burial, and meet other expenses related to the above points.	Limited cashing restriction: Single lump sum amount determined in writing by the ATO.
Temporary resident’s permanent departure	The trustee receives a request from the member and: if the benefit is less than $5,000, a copy of the temporary resident visa and passport showing departure, or a written statement from Department of Home Affairs that temporary resident visa has ended and member has permanently departed.	Benefit must be paid in full. Special tax arrangements apply to benefits paid under this COR. Benefit cannot be rolled over.
Lost member who is found where the value of benefit in the fund, when released, is less than $200	Broadly, a member is a lost member if they: are uncontactable are an inactive member, or joined the fund as a lost member/RSA holder. Note: exclusions exist, including SMSF members	No cashing restriction.
Termination of gainful employment with standard employer sponsor where preserved benefits are less than $200	N/A	No cashing restriction with regard to that fund
Termination of gainful employment with an employer who had contributed to the fund	N/A	Limited cashing restriction: preserved benefits accessed only via non-commutable life pension/annuity restricted non-preserved benefits may be accessed in full

Temporary residents

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