Avoid getting yourself on the naughty list this Christmas
Find out why you shouldn’t dip into your SMSF to pay bills or buy presents for Christmas and the consequences if you do.
There are very limited circumstances where you can legally access your super early and paying bills and buying Christmas presents doesn’t make the list.
Generally, you can only access your super when you:
- reach preservation age and retire, or
- turn 65 even if you’re still working.
Unsure about your SMSF limits?
Get professional advice from Intuitive Super before it costs you. Call our team on 1300 856 064.
To access your super legally before then, you must satisfy a condition of release.
If you’re an SMSF member and you illegally access your benefits, you may be liable for additional income tax, administrative penalties and could be disqualified as a trustee. Last financial year we disqualified over 500 trustees for illegally accessing their super.
If you’ve illegally accessed your super, contact the ATO immediately via the SMSF voluntary disclosure service. They will take your voluntary disclosure and circumstances into account when considering penalties.
If you’ve illegally accessed your super, returning it to the fund may be considered a new contribution. This may affect your Contribution caps and result in additional tax on excess contributions.
Beware of people promoting early access schemes!
If someone offers you advice that you can withdraw your super early (other than by legal means) you should protect yourself by:
- stopping any involvement with the scheme, organisation or the person who approached you,
- not signing any documents,
- not providing them with any of your personal details such as your Tax File Number (TFN) or passwords,
- making a tip-off online or phone the ATO on 13 10 20 and advise us or your situation.
