Super Lump Sum Payments Over 60

Lump sum payments from superannuation for people over age 60 are generally favourably taxed.

However, you first need to make sure that you are able to access your super before making a lump sum withdrawal from super over age 60, because being over age 60 does not, in itself, give you the ability to make a lump sum withdrawal from super. Click here to read the rules.

There are some things to be aware of before making a lump sum withdrawal from super to avoid being slugged with an unexpected tax bill.

This article addresses how you can access your super over age 60, as well as the tax on super lump sum payments, including the treatment of the taxable and tax-free components of your superannuation balance and when you can access your super tax free.

Sound confusing?

Don’t worry, it’s simple.

How to Manage Your Super Without Paying a Financial Adviser

Download our 6-step checklist & take control of your super

Let me explain.

Accessing Super Lump Sum Payments Over 60

Accessing superannuation in the form of a superannuation transition to retirement pension income stream is no problem if you are over age 60. But, what about lump sums? Can you access your super as a lump sum over age 60?

In order to access your superannuation as a lump sum you need to have met a superannuation condition of release.

A superannuation condition of release for people aged between 60 and 65 requires you to either:

1. Have ceased an employment arrangement after reaching age 60 (even if you were to commence a new employment arrangement immediately after); OR

2. Have ceased an employment arrangement after reaching your superannuation preservation age, with no intention of returning to full-time or part-time work

Both of the above satisfy the condition of release definitions of ‘retirement‘; and achieving ‘retirement’ gives you full and unlimited access to the superannuation that you had accumulate up until that point.

Therefore, upon achieving retirement, as defined for superannuation purposes, you can commence an income stream with your super savings, take a lump sum withdrawal from super or take a combination of a lump sum payment and pension income stream.

Related Posts:


Tax On Super Lump Sum Payments over 60

There are two main types of tax components that every superannuation account consists of. These include the ‘Taxable’ component and the ‘Tax-Free’ component. You can read more about the ‘Taxable’ component HERE or the ”Tax Free’ component HERE.

The Taxable component is further divided into the Taxable (taxed) and the Taxable (untaxed).

All lump sum withdrawals from super over age 60 must be made proportionately from each tax component.

Related Posts:

The tax on the Tax-Free component portion of the lump sum withdrawal is received completely tax free when over age 60.

The tax on the Taxable (taxed) component portion of the lump sum withdrawal is received completely tax free when over age 60.


The tax on the Taxable (untaxed) component portion of the lump sum withdrawal is taxed at 15% for the first $1.415M* (lifetime indexed amount) and 45% for any amount in excess, when over age 60.

*From 1 July 2017, this figure increases to $1.445M ($1,445,000).

The table below shows this for people aged 60 and over:

Tax Component Tax Rate
Tax-Free 0%
Taxable (taxed) 0%
Taxable (untaxed) up to $1.415M Lifetime Indexed 15%
Taxable (untaxed) over $1.415M Lifetime Indexed 45%

Hopefully this article has helped you to find the information you were looking for in relation to super lump sum payments for people aged 60 or over.

If you are receiving social security entitlements, you should understand the impact of making lump sum withdrawals from super and how it may affect Centrelink payments or benefits.

Chris Strano

Hi, I hope you enjoyed reading this article. If you want my team and I to help with your retirement planning, click here. If you prefer a DIY approach, then check out the SuperGuy HUB. Thanks for stopping by - Chris.

More Posts




  1. Warren Lee

    Hi Chris, I will be 60 in a few months and I have $120,000 plus some real estate in a self managed super fund. I work for myself, I import furniture and wholesale it in Australia, so I was wondering if I could get $120,000 from my super fund by telling ATO I have retired and then just keep importing after a few weeks.
    Best regards,
    Warren Lee

    • Chris Strano

      Hi Warren,
      As you seem to know, having an employment arrangement come to an end after age 60 satisfies the superannuation definition of retirement, providing you with unrestricted access to super accumulated up until that event occurs.
      However, the ATO are not fond of people who abuse this condition.
      Employment arrangement includes being self employed.
      Ask yourself, if you were the ATO and looked at your situation, would it look genuine, or was it a ploy to access super early?
      Super rules are like tax rules, you can say what you like, but need to be able to back it up if you ever get audited.
      Being over age 60, you can start a TTR Income Stream, provided the trust deed of your SMSF allows it.
      Related Post:
      Establishing whether gainful employment has ceased

  2. Herman Monserrat

    Hi Chris, I am 64yrs and currently in full-time employment. I plan to remain employed until2021. My wife and I have a self-managed superfund. The fund’s assets made up of investment property valued @$500K (currently rental townhouse) and cash deposits $100K /. Once retired we plan to dispose the property held in superfund and drawdown $400K from the sale proceeds to pay-off debt owed on property outside of superfund.

    • Chris Strano

      Hi Herman, not sure if there is a question there, but under current rules, you generally have unlimted access to your super when over age 65.

  3. FM

    Hi Chris. Firstly, thank you for providing these very helpful posts and articles.

    I am over 60. I am looking at whether I can access my super as a lump sum (to then recontribute it). Since turning 60 I have had a gainful employment arrangement come to an end, but continue to work.

    The post above says that “ceasing an employment arrangement after reaching age 60 satisfies the ‘retirement’ condition of release. Therefore ….you can take a lump sum withdrawal…”

    However, confusingly, the ATO web site describes “Terminating gainful employment” as a condition of release that has cashing restrictions and these disallow lump sum payments (

    I am confused. Is the ATO guidance contradictory? Can I take a lump sum?

    Thanks very much.

  4. Brian

    Hi Chris, I resigned from my employment on the 1st May 2020 when the company I worked for wanted me to take a 15% pay cut due to the COVID thing even though where going to get Gov subsidies. I recently turned 60 in early August. Can I get my full super now?

    • Chris Strano

      Hi Brian,
      To have full access to your super, you needed to have ceased an employment arrangement after age 60 (not before), so it appears you did not meet this condition.
      If you are retired, with no intention of returning to work in the future, then this would be a condition of release providing you with full access.
      Otherwise, at the very lease, you should be able to start a TTR Pension – giving you access to 10% of your balance each year.
      What is a TTR Pension?
      Definition of Retirement for Superannuation Purposes


Submit a Comment

Your email address will not be published. Required fields are marked *