SMSFs not exempt from early release

The number of hard hit small business proprietors with their own self-managed superannuation funds (SMSFs) means that SMSFs have been not exempt from the Government’s hardship early access to superannuation draw-downs. 

SMSF veteran and managing director of Heffron SMSF Solutions, Meg Heffron has confirmed a number of small business clients who hold SMSFs gained access to early release superannuation to help tide them over the current COVID-19 shutdown. 

Speaking to Super Review’s sister publication, Money Management, Heffron said that the fact that the clients were in an SMSF structure made them nimble with respect to access the hardship early release superannuation. 

“… we had our first ATO determination for a fund where the member asked for the $10,000 early release.  He’s been approved and received the ATO notice in the morning.  By lunchtime he had the money – the notice allowed him to just transfer $10,000 from his fund to his personal account and as it’s all with the same financial institution, it was instant,” she said. 

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“This is a guy that has been relying on friends to help him feed his kids – today, he could go shopping with his own money. I wonder how long he would have had to wait before a large fund could pay him?” 

The Australian Prudential Regulation Authority (APRA) has made clear it expects superannuation funds to process early release requests within five days.