Self managed super funds (SMSFs) must be established for the sole purpose of providing benefits to fund members in retirement. Or, if the member dies before retirement, a benefit to that member’s dependants.
Benefits can be in the form of lump sum payments, regular income payments or a combination of both.
When members can access super benefits
Like all superannuation funds, there are restrictions on when payments can be made to members from an SMSF.
Generally, member benefits are classified into 3 categories which determine when they can be accessed by members. These categories are:
- preserved benefits: can be accessed when a suitable condition of release is met on or after reaching the member’s preservation age;
- restricted non-preserved benefits: can be accessed when a suitable condition of release is met, and
- unrestricted non-preserved benefits: can be accessed at any time.
A member’s preservation age is determined by their date of birth.
| Date of birth | Preservation age |
| Before 1 July 1960 | 55 |
| 1 July 1960 – 30 June 1961 | 56 |
| 1 July 1961 – 30 June 1962 | 57 |
| 1 July 1962 – 30 June 1963 | 58 |
| 1 July 1963 – 30 June 1964 | 59 |
| After 30 June 1964 | 60 |
Learn more about the rules governing release of superannuation benefits.
Types of income stream payments available
Super benefits can be paid to fund members as a lump sum payment or as an income stream.
Learn more about income stream payments.
The ATO recommends SMSF trustees seek professional advice before starting to pay an income stream1.
Learn how Dixon Advisory can help you with self managed super funds.
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1. From the ATO’s Running a self-managed super fund – Your role and responsibilities as a trustee.