Under these measures there is no work test and there is no capping the amount of benefits a person can access.

Members using these new rules can use existing pension products such as allocated pensions or market linked pensions.

This new rule does not change the existing conditions of release on superannuation benefits, it merely adds an additional condition of release added to those already existing. The benefits may only be taken as a non-commutable income stream.

The new condition of release provides additional flexibility to workers moving into the transition to retirement phase, enabling them to supplement a reduced income or maximise their retirement benefits by drawing a tax-effective pension income and then salary sacrificing.

This option does not have to be offered by all superannuation funds. However, large superannuation funds have already launched products to take advantage of the new rules.