Exempting superannuation investments 108-05070030

If the customer has not mentioned or requested an exemption for a superannuation investment attempt to contact the customer, see Calling a customer or returning a customer's call.

If contact is:

• successful, go to Step 2
• unsuccessful
• document contact attempts
• create a Display on Access (DOA) DOC on the customer’s record with the following text:
  If the customer contacts, please discuss accessibility to their superannuation investment. If the customer mentions they cannot access their superannuation while employed, follow Step 2 in Table 1 of Exempting superannuation investments 108-05070030.

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

• document any contact on the customer's record
• 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 most recent superannuation statement issued by the applicable superannuation fund. Tell them 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 3
• lodged as part of a claim for Age Pension, go to Step 4
• 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 exemption, make sure the FIS Officer who spoke to the customer receives the form.
  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, refer the customer to a FIS Officer

Procedure ends here.

The application must be forwarded to a FIS Officer, but first check:

• the customer has lodged their most recent superannuation statement from the super fund manager
• the customer has provided evidence to support the exemption such as payslips or employer letter
• 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 are recorded
• Refer the customer to a FIS Officer.
• Continue to process the claim, and refer to Processing claims for Age Pension and Pension Bonus if needed
• No, request the missing documents for the exemption. Continue to process the claim and 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 referred to a FIS Officer
• Continue assessing the claim, and refer to Processing claims for Age Pension and Pension Bonus if needed

Procedure ends here for Service Officer.

Review the completed superannuation exemption application, and the superannuation statement, which 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
• 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
• If the customer claims they cannot access their investment and the superannuation fund is not listed below, check with the superannuation fund on their rules for accessing the superannuation investment upon reaching Age Pension age:
• Australia Post Superannuation Scheme (APSS)
• Commonwealth Superannuation Scheme/Public Sector Superannuation Scheme (CSS/PSS)
• Emergency Services and State Super (ESS Super)
• Government Employees Superannuation Board of Western Australia (GESB) Gold State Super
• NSW State Authorities Super Scheme (SASS)
• Queensland Government Superannuation Fund (QSuper)
• Retirement Benefit Fund Tasmania (RBFTAS)
• South Australian Superannuation Fund (Super SA Select, Triple S and Lump Sum Scheme)

For more information on the various superannuation funds:

• see the Resources page, or
• lodge a request online with the FINS Helpdesk

• 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

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.

Customers of Age Pension age may be able to access their superannuation investment even if they are still employed. Exception: most members of defined benefit schemes will not be able to access their benefit until they stop working for that employer or exit the scheme.

If part of the superannuation investment is unrestricted non-preserved, an exemption cannot be given for that investment unless the superannuation fund rules stop access.

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

Note: certain funds allow a customer to have multiple superannuation investments. For instance, a customer may have both an accumulation account and a defined benefit account with QSuper. As these are considered separate investments, the customer can apply for an exemption for their defined benefit account, even if the accumulation account is accessible.

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. This discussion may include the option of the customer withdrawing the unrestricted non-preserved amount.

Tell the customer to seek advice from their superannuation fund and/or financial adviser about what can be done to withdraw or alter the status of these funds, so the entire investment is preserved.

If the customer decides to:

• proceed with their application without withdrawing the unrestricted non-preserved component, go to Step 5
• withdraw their application, annotate the DOC that the application has been withdrawn. Procedure ends here
• withdraw the unrestricted non-preserved amount, tell the customer a new statement from their superannuation fund is needed. The statement should show the investment is inaccessible (no unrestricted non-preserved component). Note: the customer does not need to complete another application. Once the new statement is received, go to Step 5

• QSuper, go to Step 6
• another superannuation fund, go to Step 8

Most statements from QSuper do not refer to the terms preserved, restricted/non-preserved or unrestricted/non-preserved. Instead QSuper use the following terms:

• available cash now - unrestricted/non-preserved
• available on leaving employment - restricted/non-preserved
• available on permanent retirement - preserved

Note: Department of Social Services (DSS) previously advised if a superannuation investment has an unrestricted/non-preserved amount, the investment is accessible and an exemption cannot be granted. However, DSS have advised QSuper defined benefits accounts and accumulation accounts are to be treated as separate investments.

On 13 September 2007, the QSuper trust deed for accumulation accounts was changed to allow access to superannuation for employees once they reached 65 years of age. No access is available at 65 to the QSuper defined benefit scheme, if the customer is still employed with the Queensland Government.

Does the customer have a QSuper investment and is 65 and over?

• Yes, go to Step 7
• No, go to Step 8

Customers can apply for an exemption for their defined benefits account, even if they have an amount in their accumulation account. As the customer has reached 65, their accumulation account is accessible.

If the customer claims they cannot access their accumulation account:

• ask the customer to provide written confirmation from QSuper
• email the details to the FINS Helpdesk
• follow the FINS Helpdesk advice

Once received, go to Step 8 if eligible

• 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
• Email the details to the FINS Helpdesk

Procedure ends here for FIS Officers.

The FINS Helpdesk 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
• refer recommendations and supporting documents to the Income Support Means Test team for delegate consideration. See the Resources page for contact details

Once the delegate has made the decision, the customer will be advised in writing and notification will be sent to the FINS Helpdesk.

Scan the determination outcome and customer advice letter to the customer record.

Approved, for:

• Super SA Select or Triple S superannuation, go to Step 4
• Other superannuation investments, go to Step 3

Not approved

• The Income Support Means Test team will advise the customer of the outcome in writing
• Appropriately skilled staff 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

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

For Super SA Select and Triple S superannuation investments, go to Step 4.

As the MI screen used to code superannuation investments cannot record both the income and asset test exemptions, follow this workaround for all funds except for Super SA Select and Triple S superannuation investments:

• 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. Code 'S' beside the investment and press [Enter]
• Reduce the balance of the superannuation investment to zero or key '0' in the Super/Rollover Units: field, if investment is unitised
• Press [Enter] again to bypass the 'Exit Fee Date/Amount' warning
• Finalise the activity on the Assessment Results (AR) screen
• Go to Step 5

Customers with Super SA Select and Triple S superannuation can apply for a partial means test exemption only. These customers can access their super when they turn 65 whilst still working, however they must maintain a minimum account balance ($6,500 or $25,000 for police and ambulance operational staff).

Note: this does not apply to holders of a Super SA Lump Sum Scheme superannuation investment, where different conditions of release rules apply.

For the partially exempt portion,

• Go to the Unregistered Managed Investment (MIUS) screen
• Fund Name: key in the name of superannuation fund
• Product: key in ‘Partial super exemption applies’
• Investment Type: key in ‘SS’
• Total Asset Value: key in $6,500 or $25,000 (whichever is applicable)
• Event Date: key in the date of effect of the superannuation exemption
• Loan/Encumbrance Amount $: key in the asset test exempt amount of $6,500 or $25,000 (whichever is applicable)
• Deeming Exempt: key in ‘Y’
• complete Source:, DOR: and Action: fields and press [Enter]

For the assessable portion,

• Go to the Unregistered Managed Investment (MIUS) screen
• Fund Name: key in the name of superannuation fund
• Product: key in product name
• Investment Type: key in ‘SS’
• Total Asset Value: record the balance of the fund as per the most recent statement, less the amount recorded as partially exempt ($6,500 or $25,000 as above). The asset test and deeming exemptions do not apply to these amounts
• Event Date: key in the date of effect of the superannuation exemption
• Loan/Encumbrance Amount $: leave this field blank
• Deeming Exempt: key in ‘N’
• complete Source: DOR: and Action: fields and press [Enter]
• Go to the MIS screen and select the relevant superannuation investment originally coded. Code ‘S’ beside the investment and press [Enter]
• reduce the balance of the superannuation investment to zero or key '0' in the Super/Rollover Units: field, if investment is unitised
• Press [Enter] again to bypass the ‘Exit Fee Date/Amount’ warning

Go to Step 5.

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
• for Super SA Select or Triple S include that any updates made to the asset value is to be reduced by the partial means test exemption amount

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
• the date the customer turns 70 years of age (all superannuation access restrictions cease at age 70)
• 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, procedure ends here
• 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, procedure ends here
• 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), document the record. Procedure ends here
• 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
• 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

Make sure the exemption status of the super fund is removed from the date employment stopped. This is recorded in the Loan/Encumbrance Amount$ and Deeming Exempt fields. This will make sure it becomes assessable on the customer’s record.

For Super SA Select and Triple S zero off the partial means test exempt amount from the MIUS screen. See Managed investments - updating existing investments.