“Unfettered access to super benefits for persons who have reached age 60 and still working can occur, however, under the second tranche of the ‘retirement’ condition of release located in Regulation 6.01(7)(b) of the Superannuation Industry (Supervision) Regulations of 1994.”

Several definitions under which retirement is said to have occurred.

“They must have attained the age of 60 and an arrangement under which the member was gainfully employed has come to an end,” Ali said.

Additionally, he said, either the person attained that age on or before the ending of the employment, or the trustee is reasonably satisfied that the person intends never to again become gainfully employed, either on a full-time or a part-time basis.

Ali said this means members aged between 60 and 65 can leave an employment arrangement, meet a retirement condition of release, and access their superannuation benefit as a tax-free lump sum, tax-free pension, or a combination of the two.

“Furthermore, a member who has more than one genuine employment arrangement can retire from one of those arrangements after age 60 and still meet the definition of retirement, whilst retaining another genuine employment arrangement.”

“This means the member’s accumulated benefit at that point in time will be fully accessible to them tax free.”

He gave an example of Theo, who has reached age 60 and has two employment arrangements – one with Hercules Pty Ltd, where he works part-time as an artist model, and one with Dennett Pty Ltd, where he works full-time as an English translator. He has $675,000 in his SMSF, currently all a preserved benefit.

“Theo is tired of being a male model and decides to cease this employment arrangement. At that point in time, all of the benefits in his SMSF become unrestricted non-preserved, which means he can access it as an account-based pension, tax-free lump sum, or a combination of the two,” Ali said.

“He decides to undertake a re-contribution strategy as his benefit consists of a taxable component, and he wants to increase the tax-free component by cashing out his benefit tax free and re-contributing it back to the fund as a non-concessional contribution (NCC).

“He can do this, but he needs to remember that any contributions to the fund will again be preserved until he satisfies a subsequent condition of release.”

Ali concluded that having a nil cashing restriction condition of release does avail superannuants a range of strategies that can benefit them in retirement, or provide benefits to the member’s dependants or legal representatives after the member’s death.