Exempting superannuation investments 108-05070030

All customers aged 65 years or over should have full access to their superannuation, including defined benefit accounts, even if they are still employed. There are limited cases where an exemption may apply, for example, a legislative bar due to a Family Law Court decision.

If a customer either mentions or requests an exemption for a superannuation investment:

• document any contact on the customer's record. Include details of the superannuation investment and any other relevant information
• do not provide advice to the customer regarding the possible outcome of the exemption application
• issue an Application for exemption of superannuation investment from the Social Security income and assets tests (see the Resources page for a link)
• make sure the application is for the person who owns the superannuation investment. For example, if a partner is not current on a payment or service but owns the investment, they must complete the application, not the customer
• ask the customer to provide the fund rules which are preventing accessibility and the most recent superannuation statement showing the following:
• The name of the fund manager
• Full name of the investment product
• APIR code if available
• The value of the investment or the number of units owned (if a unitised product)
• A statement from their financial advisor is not acceptable
• check the Managed Investment Summary (MIS) and Employment Income Summary (EANS) screens to make sure current superannuation investment details and employment income are recorded on the customer’s record

If the request is:

• verbal or lodged in person with a Service Officer, go to Step 2
• lodged as part of a claim for Age Pension, go to Step 3
• lodged with a Financial Information Service (FIS) Officer, see Table 2

Has the customer spoken to a FIS Officer?

• Yes, and they are lodging the application for a superannuation exemption.
  If there is no FIS Officer on site:
• scan the application form and supporting documents, and
• create an open work item. Use Fast Note – select Auto text > Generic > Enquiry > Request for action FIS
• No, offer the customer a referral to a FIS Officer
• Procedure ends here.
• No, and they decline a referral to a FIS Officer
• scan the application form and supporting documents, and
• create an open work item. Use Fast Note – select Auto text > Generic > Enquiry > Request for action FIS
• Procedure ends here

The application for a superannuation exemption must be forwarded to a FIS Officer. Use Fast Note – select Auto text > Generic > Enquiry > Request for action FIS

First, check:

• the customer has lodged their most recent superannuation statement and fund rules outlining the reasons preventing accessibility, from the super fund manager
• the customer has provided evidence to support the exemption such as payslips or employer letter (if payslips are not available or if on leave without pay)
• the person who owns the investment has completed and signed the application for exemption of a superannuation investment form (even if they are not claiming)

Have all of the appropriate documents for the super exemption been provided?

• Yes, scan the application form and supporting documents, ensuring the superannuation investment and any earnings have been declared within the Age Pension claim
• Offer a referral to a FIS Officer. (if not already spoken to a FIS)
• Continue to assess the claim, and place on hold pending the superannuation exemption outcome. Refer to Processing claims for Age Pension and Pension Bonus if needed
• No, request the missing documents for the exemption via a QSS32. Continue to assess the claim and place on hold until documents are retuned. Refer to Processing claims for Age Pension and Pension Bonus
• Once the documents for the super exemption are received, the superannuation and earnings should be recorded and the customer is offered a referral to a FIS Officer

Procedure ends here for Service Officer.

Review the completed superannuation exemption application, superannuation statement and the fund rules outlining the reasons preventing accessibility. These must be issued by the fund manager (not a financial planner) and should be the most recent available.

• Make sure the application is for the person who owns the superannuation investment, rather than their partner (for example, if a non-customer partner owns the investment, they must complete the application, not the customer)
• Check that employment verification has been provided and recorded on the customer’s record or declared within the Age Pension claim
• Find out the approximate date for when the customer expects to meet the release requirements (for example, retirement). Annotate any contact notes on the customer record

• Yes, ask the customer to obtain written confirmation from their employer on their current employment status. Once received, go to Step 3
• No, go to Step 3

All customers aged 65 years or over should have full access to their superannuation, including defined benefit accounts, even if they are still employed. There are limited cases where an exemption may apply, for example, a legislative bar due to a Family Law Court decision.

Unrestricted non-preserved benefits

Unrestricted non-preserved benefits are generally benefits for which the member:

• has previously met a condition of release and
• was entitled to be paid, but
• has voluntarily decided to keep the funds within the superannuation system

There are no restrictions for paying these superannuation benefits to a member at any time on demand, regardless of:

• age
• employment situation, or
• financial position

This is if the superannuation fund rules allow the payment.

If all or part of the superannuation investment is accessible, there is no need to forward a submission for a superannuation exemption.

Is part of the investment accessible?

• Yes, go to Step 4
• No, go to Step 5

Discuss with the customer. Explain that an exemption is unlikely as they can access part or all of their investment. If a customer disputes this information

• ask the customer to obtain written confirmation from the superannuation fund that they are unable to access any of their superannuation
• submit an enquiry to the Income Support Means Test team (see Resources tab for contact details)

If the customer decides to:

• proceed with their application, go to Step 5
• withdraw their application, annotate the DOC that the application has been withdrawn. Procedure ends here

• Complete the FIS Officer checklist for superannuation investment exemption requests. See Resources page for checklist
• Scan the customer’s application for superannuation exemption form, supporting superannuation statement and the FISO checklist as one document onto the customer record
• submit an enquiry to the Income Support Means Test team (see Resources tab for contact details)

Procedure ends here for FIS Officers.

The Income Support Means Test team will:

• undertake the initial checks and determine whether the application is eligible under the Superannuation Industry (Supervision) Regulations or rules of the fund
• examine the customer's record to verify the information provided
• contact the FISO if more information is needed
• make a recommendation on whether the rules are met to grant an exemption for each superannuation investment
• update the customer advice letter template with the customer details and the recommended outcome

Once the delegate has made the decision, the customer will be advised in writing.

Income Support Means Test team to email the details to the Perth Seniors processing team for appropriately skilled staff to action.

Approved, go to Step 3

Not approved

• The Income Support Means Test team will advise the customer of the outcome in writing
• An email will be sent to appropriately skilled staff at the Perth Seniors processing team who will:
• annotate the DOC outlining the reasons for the rejection
• scan all related documents to the customer record (application, determination outcome and customer advice
• Procedure ends here

Appropriately skilled staff at the Perth Seniors processing team

Scan all related documents to the customer record (application, determination outcome and customer advice).

As the MI screen used to code superannuation investments cannot record both the income and asset test exemptions, follow this workarounds:

• Go to the Unregistered Managed Investment (MIUS) screen
• Fund Name: key in the name of superannuation fund
• Product: key in 'Super exemption applies'
• Investment Type: key in 'SS'
• Total Asset Value: key in the value of the investment
• Event Date: key in the date of effect of the superannuation exemption
• Loan/Encumbrance Amount: enter the value of the investment
• Deeming Exempt: key in 'Y'
• complete Source:, DOR: and Action: fields and press [Enter]
• Go to the MIS screen and select the relevant superannuation investment originally coded
• Reduce the balance of the superannuation investment to zero or key '0' in the Super/Rollover Units: field, if investment is unitised
• Finalise the update, see Managed investments - adding a new investment or Managed investments - updating existing investments.
• Go to Step 4

Complete these 2 tasks in all cases to make sure all staff can see the exemption and that the conditions for the exemption continue to be met.

Create a Display on Access (DOA) DOC. This must include:

• name of the investment
• date of effect (DOE) as stated in the Determination outcome
• the circumstances in which the conditions of grant of exemption may stop to be met

In Customer First, create a manual review on the Review Registration (RVR) screen and complete the fields as follows:

• Service Reason: customer's payment type
• Review Reason: SUP (Superannuation)
• Due Date:
• the date 12 months from approval of exemption, or
• the date the customer expects to stop employment, or
• Source: INT
• Date of Receipt: today's date
• Notes: record reason for review: 'Super exemption on MIS only applies while customer still working for relevant (see EANS screen and DOA DOC)'. Include any extra information about the investment if customer has more than one super investment
• Keyword: SUPEXMPT
• Workgroup: leave blank
• Position: leave blank
• Transfer to Region: leave blank

The review will mature on the Due Date coded in the RVR activity. Workload Management will allocate the review for manual action.

If the person granted the super exemption has not claimed a payment, the review will need to be coded on the partner's record with the same reason but modified text.

If the customer’s employment status changes or when the super exemption review becomes due, see Table 4.

Check the customer’s record for a Display on Access (DOA) DOC or any other documents that outline the details of the employment that has prevented access to their super fund.

Have earnings continued to be declared from the employer named in the record?

• Yes, go to Step 7
• No, go to Step 2

Is there any indication that the customer may be on a period of unpaid leave (for example, because of illness or caring duties), but is still considered to be working for the same employer?

Note: some employees such as teachers or nurses may work on a relief or ad hoc basis. Take care when assessing employment status.

• Yes, go to Step 7
• No, go to Step 3

If there is no evidence of continuing employment, check the record and any scanned documents to see if the customer has advised ceasing their employment.

Is there evidence on the record that the customer has stopped employment?

• Yes, go to Step 4
• No, contact the customer and clarify their employment status:
• If still employed (but on relief only or leave without pay), go to Step 7
• If employment has permanently stopped, see Cessation of employment income then go to Step 4

Is there any indication that the super fund has been converted into another product, such as an income stream or defined benefit, or withdrawn for other documented reasons?

• Yes,
• Make sure the new product(s) are coded correctly, and the amount correlates to the previous super investment
• Update all amounts coded on the MIUS screen to zero from the date of purchase of the new product(s), see Managed investments - updating existing investments
• Expire the DOA DOC
• Procedure ends here
• No, go to Step 5

Contact the customer and check whether they still have the previously exempt super fund.

Obtain details verbally from the customer. If there are not enough details for an accurate assessment, request the missing documents. See Requesting information (CLK).

Does the customer still own part or all of the product that was exempt?

• Yes,
• Request the current balance of the investment. A current statement from the fund may be required if the product is unitised and there is not enough evidence of the correct balance
• Tell the customer that as they are no longer employed, the super will be assessable
• Expire the DOA DOC
• Go to Step 6
• No,
• Request evidence of the withdrawal and the details of the new investment or where the funds have been utilised
• Make sure that all fields on the MIUS screen relating to the exempt super fund are set to zero when the new details are updated
• Expire the DOA DOC
• Procedure ends here

Check if the superannuation has an APIR or if it can be located by a search under the fund manager, product group and option on the MIP screen. See Managed investments - adding a new investment

• Select the product from the MIUS and zero off the total asset value from the date employment ceased
• Code the MIP using the same DOV (date the customer ceased employment)
• Record the superannuation balance/unit numbers as at the date the customer ceased employment
• If the product cannot be found on MIP, and the fund is to remain on MIUS, make sure the exemption status of the super fund is removed from the date employment stopped
• Remove the Loan/Encumbrance Amount$
• Update Deeming Exempt fields to No
• DOC the record with the reason the exemption has ceased and the DOE

Procedure ends here.

• Complete the review
• DOC the record to confirm superannuation exemption has been reviewed and exemption criteria still met
• Create another manual review: go to Table 3, Step 4
• 12 months from original approval of exemption or
• Customer expects to stop employment

Procedure ends here.