Assistant Treasurer Mal Brough has introduced new regulations to allow older employees to access their superannuation through an income stream from July 1.

The changes, which attach to the Government’s Transition to Retirement measures, mean eligible people will be able to access their super and still remain in the workforce.

Under the new regulations, allocated pensions cannot be commuted and cashed out as a lump sum while a person is still working, but on retiring or reaching 65, they will have the option to commute the allocated pension and have access to full benefits.

Mr Brough says the regulations will remove an “artificial barrier” that keeps many older Australians from remaining connected to the workforce, and represent a more flexible and adaptable retirement income system.

“This initiative will provide more options for people making the transition from work to retirement. For example, a person could continue working part-time and use part of their superannuation to supplement their income,” he said.

They also benefit those who choose to return to full-time work by allowing anyone with an allocated pension to stop their income stream and return the benefits to their super fund.