There are very limited circumstances where you can legally access your super early, and the ATO is reminding taxpayers that “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 are still working).
To access your super legally before then, you 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.
You should beware of people promoting ‘early access schemes’ to withdraw your super early (other than by legal means).
You can protect yourself from promoters of such schemes by:
- stopping any involvement with the scheme, organisation or person who approached you;
- not signing any documents, and not providing any of your personal details such as your tax file number; and
- making a ‘tip-off’ to the ATO online or by phoning the ATO on 13 10 20.
