ATO warns about misinformation on super changes circulating online

Are you worried about rumours claiming your super preservation age will change from 1 June 2025? Take a deep breath – the ATO has confirmed these claims are false.

The ATO has recently issued a warning about misleading information spreading online regarding supposed changes to superannuation preservation and withdrawal rules. According to ATO Deputy Commissioner Emma Rosenzweig, this is “classic misinformation” that you should disregard.

“The maximum preservation age – the age when you can access your superannuation savings on retirement – is 60 for anyone born from 1 July 1964”, she confirmed.

False claims

Some of the misleading claims currently spreading online include:

• that the preservation age will increase from 60 years to 70 years by 2030;
• that lump-sum withdrawals will be capped at 50% of a person’s balance;
• that there will be new “phased withdrawal limits” for people in pension phase;
• that a “deferred access bonus” of 3% per year up to age 75 will be introduced; and
• that early access to super will face tighter eligibility criteria and capped withdrawals.

None of these claims are true. No such changes have been proposed by the Australian Government or Treasury, and none are in legislation.

Your super access rights

It’s important to understand when you can legally access your super, which is:

• when you reach preservation age and retire;
• when you turn 65, regardless of whether you’re still working; and
• if you’re between 60 and 65 and haven’t retired, you can start a transition to retirement income stream (TRIS), which allows you to receive a regular income from your superannuation.

For anyone born on or after 1 July 1964 their preservation age is 60. People born before this date will have a lower preservation age.

To satisfy the “retired” condition, you must have reached preservation age and ended a position of gainful employment. If your employment ended after you reached your preservation age, there are no further requirements. However, if your employment ended before reaching your preservation age, the trustee of your fund must be reasonably satisfied that you don’t intend to work for 10 or more hours each week.

Protecting yourself from misinformation

The ATO has observed websites attempting to harvest personal information such as Tax File Numbers, identity details and myGov login credentials under the guise of providing “super advice”.

To protect yourself:

• Always verify information through trusted sources like the ATO, ASIC’s MoneySmart or your super fund.
• Consult a registered tax professional or licensed financial adviser for personalised guidance.
• Be wary of “free expert” tax advice from unverified sources.
• Think twice before acting on information from social media or non-official websites.
• Check if tax professionals are registered with the Tax Practitioners Board before engaging their services.

What this means for your retirement planning

If you’re approaching retirement, you can rest assured that the established rules for accessing your super remain unchanged. You still have options for how to receive your benefits, including:

• taking a super lump sum;
• starting a super income stream; or
• using a combination of both approaches.

Remember that the tax implications of withdrawing your super depend on factors including your age, the amount withdrawn, and whether you receive benefits as an income stream or lump sum.

While it’s important to stay informed about genuine superannuation developments, be vigilant about the sources you trust. This misinformation often appears legitimate and targets people at a vulnerable time when they’re making major financial decisions. Articles and emails may look professional and authoritative, but they’re designed to spread fear and confusion.