For many professionals in mining and resources, reaching age 60 or 65 does not coincide with an immediate exit from the workforce. It is increasingly common for senior leaders to remain in full‑time, advisory or board roles well beyond these ages.
What is often overlooked is that these ages represent not just career milestones, but structural inflection points within the Australian superannuation system. At this stage, how superannuation can be accessed, structured and taxed may begin to change, even where employment continues.
In recent client work at Resources Unearthed, we have seen that decisions made at or around age 60 or 65 can have a disproportionate impact on long‑term tax outcomes, household cashflow flexibility and how much family wealth may ultimately be held in the most tax‑effective environment available under current legislation.
This article outlines structural considerations that mining and resources professionals and their spouses may wish to revisit as they approach or reach these ages.
Why Age 60 and Age 65 Matter from a Structural Perspective
Age 60 and age 65 are often discussed in terms of access to superannuation. In practice, they are better understood as thresholds that change the tax character of superannuation, subject to conditions of release and legislated limits.
From age 60, access may be available depending on work status and future employment intentions. From age 65, access is available regardless of work status, including for those who continue working in executive roles.
The key implication is not simply the ability to access your superannuation and draw income, but the opportunity to move assets from accumulation phase into pension phase. In accumulation phase, earnings and capital gains are taxed at up to 15%. Whereas in pension phase, earnings and capital gains are taxed at 0%.
Over time, this difference in tax treatment can become increasingly material, particularly for households with significant superannuation balances.
Commencing a Pension While Continuing to Work
One strategy that is often under‑considered involves commencing a pension either for an executive or their spouse while employment income continues to be received within the household.
From a technical perspective, commencing a pension primarily affects the tax treatment of assets rather than the underlying investment strategy. Your investments and risk exposure may remain largely unchanged, while the tax treatment of earnings shifts. Where a full condition of release has not yet been met, a transition‑to‑retirement income stream may apply, which has the same tax treatment as the accumulation phase, with earnings and capital gains taxed at up to 15%. This differs from a pension commenced under a full condition of release, where the pension is in the retirement phase and earnings and capital gains are taxed at 0%.
The additional income received in the form of pension payments can also be used to improve household cashflow flexibility. Rather than increasing discretionary spending, this additional cashflow for households who continue to work, may be redirected toward other superannuation contributions, which may provide further tax effectiveness for your household.
This is particularly relevant in households with strong income but limited surplus cashflow to support additional tax effective superannuation contributions. The commencement of a pension and drawing of an income stream can also be utilised in other ways, which can increase overall wealth for your household.
Uneven Spousal Balances and the Transfer Balance Cap Constraint
Within the mining and resources industry, it remains common for one spouse to hold a significantly larger superannuation balance than the other. This often reflects income disparities, remote work patterns or career breaks taken earlier in life.
While this imbalance may appear inconsequential during accumulation years, it becomes increasingly important once pension phase is considered.
Each individual is subject to a transfer balance cap, which limits how much can be held in tax‑free pension. Where one spouse approaches or exceeds this cap and the other remains well below it, the household may face a structural inefficiency and be foregoing additional tax savings.
From a tax perspective, the distinction between phases is significant. In accumulation phase, investment earnings and capital gains are taxed at up to 15%. By contrast, earnings and capital gains on assets supporting a pension account are currently taxed at 0%, subject to the transfer balance cap. More even distribution of balances can therefore allow a greater proportion of household superannuation to be held in pension phase, reducing the overall tax payable inside of superannuation and pension accounts.
Addressing this imbalance typically requires early planning and careful sequencing of withdrawals, contributions and pension commencements.
Accessing Superannuation After 65 While Continuing to Work
Another common misconception is that superannuation only becomes relevant once employment ceases, or there is a change in working hours. Reaching age 65 presents a planning opportunity even for those who continue working as there is no restriction on access which relates to your employment or employment intentions.
Accessing superannuation at this age allows flexibility to restructure accounts, commence pensions and reassess how balances are allocated between spouses. For many executives, this is less about income replacement and more about positioning capital efficiently for the decades ahead.
The Cost of Delaying Strategic Review
The consequences of not reviewing superannuation structure at these ages are rarely immediate but tend to accumulate over time.
Potential outcomes include sub‑optimal use of pension caps, reduced flexibility to rebalance between spouses and a higher ongoing tax burden on investment earnings and capital gains than may otherwise have been necessary. In many cases, missed opportunities are not recoverable due to contribution caps and access rules.
Final Observations
Approaching age 60 or 65 is not purely a question of when to retire. For mining and resources professionals and their spouses, it represents an opportunity to reassess how superannuation is structured at a system level.
The appropriate strategy will always depend on individual circumstances, including work intentions, existing balances, cashflow requirements and future objectives. However, understanding how the superannuation framework changes at these ages is essential to making informed decisions.
Used thoughtfully, these milestones can support greater flexibility, more efficient use of pension limits and improved after‑tax outcomes over time.
A discussion with our qualified financial advisers can help clarify which strategies may be available under current legislation and whether changes to structure or sequencing could improve flexibility or long‑term efficiency.
You can call Brett Cribb, James Marshall or Debbie French on +61 (0)7 3007 2000 or email contact@resourcesunearthed.com.au.
To learn more about Brett, click here.
Resources Unearthed is a solutions hub that connects senior executives, established professionals and business owners in mining and resources with proven specialist advisers.
Stratus Financial Group and its advisers are Authorised Representatives of Fortnum Private Wealth ABN 54 139 889 535 AFSL 357306. This information is general in nature and does not take into account your objectives, financial situation or needs. You should not act on it without obtaining professional advice specific to your circumstances.
Please note: For financial advice and services relating to this matter that are not offered under the Fortnum Private Wealth AFSL, in accordance with our collaborative advice model, where required such matters are referred to appropriately qualified professionals.
Sources:
ATO – Accessing your super to retire
ATO – Conditions of Release
ATO – Superannuation Pensions and Annuities
