Exempting superannuation investments 108-05070030

Superannuation investments are normally assessed under the income and assets tests for customers of Age Pension age. Most funds allow customers to access their investment, even if they are still employed.

There are limited scenarios where a person above Age Pension age could be prevented from accessing their superannuation funds.

• These may include where there is interaction with certain Family Court decisions (sections 9.17 and 6.17AA of the Superannuation Industry (Supervision) Regulations 1994)
• Certain older schemes that are partially or fully exempt from the operation of the Superannuation Industry (Supervision) Act 1993 (SIS Act) and Regulations may have different access rules

Testing eligibility for exemption

Any customer who is over Age Pension age and claims to be unable to access their superannuation, regardless of their employment status, may submit an application for an exemption to be considered. Generally, there are no restrictions on access to preserved benefits when a member reaches age 65.

Ask the customer to provide written advice from their superannuation fund outlining the reasons preventing accessibility after turning Age Pension age, with reference to the relevant SIS Regulations/Act.

In all cases, make a referral for the customer to speak to a Financial Information Service (FIS) Officer.

The FIS Officer will help people through the superannuation exemption application process:

• by explaining how the various superannuation products affect government payments
• as the contact person for superannuation exemption enquiries
• by reviewing applications and completing the FIS Officer checklist for superannuation investment exemption requests

The earliest possible DOE for a superannuation exemption is the date the customer enquired or applied.

In some cases, the date of application is the earliest date recorded that the customer spoke to Centrelink about their exemption. This could be before they submitted the application if there is a record of their enquiry about the exemption.

The Minister for Social Services has the delegation to exempt superannuation investments if they are inaccessible. However, the Minister has delegated this authority to Services Australia.

The DOE of an exemption and rejection of an application for exemption are not appealable decisions as they are Ministerial determinations. However, if more information is provided following a rejection, another application for exemption may be submitted.

An exemption exists for as long as the circumstances of the investment make it inaccessible. If it appears the exemption decision was not applied correctly, it can be resubmitted for further consideration.

A superannuation exemption is only for a limited period. It stops when the conditions under which it was granted are no longer met. These conditions are included in the determination advice and the letter sent to the customer.