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Assessing withdrawals from superannuation 108-05070020

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This document outlines the assessment of lump sum withdrawals from superannuation funds. This procedure is not for Family Tax Benefit (FTB) or Child Care Subsidy (CCS) customers.

Lump sum withdrawals

Lump sum withdrawals from a superannuation fund are not assessed as income. Depending on what the customer uses the withdrawn amount for, further assessment may be necessary. If the withdrawn amount is used to purchase an assessable asset, the relevant income and asset assessment will apply. For example, if the money is placed in a bank account, the account balance is an asset and subject to deeming. If the withdrawn amount is spent, no further assessment is necessary.

Benefits released from superannuation

For FTB and CCS, benefits released from superannuation are generally taxable income and must be included in the customer's estimate. Service Officers should check if the customer needs to revise their current family assistance income estimate and advise choices available to help reduce the chance of an overpayment during the reconciliation process.

Assessing superannuation

Taxable income for family assistance and Paid Parental Leave scheme payments

Updating income estimates for the current financial year

Helping families provide a reasonable annual income estimate for family assistance payments

Assessment of adjusted taxable income for family assistance and Paid Parental Leave scheme payments