Special access to existing superannuation balances will be available to those who have experienced significant (at least 20%) reductions in their income or are unemployed or who have been retrenched. The rules announced today are explained here.
While we understand the eligibility rules for SMSF members will be the same as for members of non-SMSFs, separate arrangements are being made and there may be a different process to follow when moneys are to be released from an SMSF. Further guidance on the application process for SMSF members is to be made available on the ATO website in due course.
Applications will be able to be made from mid-April 2020. However it is not yet clear how long it will take for the ATO to process an application and for the fund to make payment to the individual.
Note that anyone who simply withdraws money from their SMSF now, or even after mid April but does not follow the right process, will be subject to the usual rules. This could be substantial tax and other penalties – it is vital to wait until the new rules are in place.
If you would like to discuss this in further detail, please phone us on 02 9580 3353.