There are very limited circumstances where taxpayers can legally access their super early, and the ATO is reminding taxpayers that “paying bills and buying Christmas presents doesn’t make the list.”

Generally, taxayers can only access their super when they:

-reach preservation age and ‘retire’; or

-turn 65 (even if they are still working).

To access their super legally before then, taxpayers must satisfy a ‘condition of release’. SMSF members who illegally access their benefits may be liable for additional income tax and administrative penalties, and they could be disqualified as a trustee.

For taxpayers who have illegally accessed their super, returning it to the fund may be considered a new contribution. Depending on their contribution caps, this may result in additional tax on excess contributions.

Taxpayers should beware of people promoting ‘early access schemes’ to withdraw their super early (other than by legal means). They can protect themselves from promoters of such schemes by:

–stopping any involvement with the scheme, organisation or person who approached them;

–not signing any documents, and not providing any of their personal details such as their tax file number; and

–making a ‘tip-off’ to the ATO online or by phoning the ATO on 13 10 20.

If you have any questions or would like to speak to one of our professional business and tax advisors, please contact our office on (08) 9392 7600 to make a booking or click here.

With three offices across Western Australia and over 20 years of experience, Acclaim Accounting is a dynamic team of highly trained and skilled individuals committed to providing innovative and effective advice, excellent service and maintaining only the highest standards in ethical professional practice