Accessing money in your SMSF
The ATO has made a call to professional accountants to help identify and manage illegal early access to superannuation by members of self-managed superannuation funds.
The ATO has made a call to professional accountants to help identify and manage illegal early access to superannuation by members of self-managed superannuation funds (SMSFs).
In general, access to your super is only possible if you retire and turn 60, or you turn 65 (regardless of whether you're working). Early access to superannuation is only possible in very limited circumstances such as terminal illness, permanent incapacity, and severe financial hardship.
There are two common ways illegal early access occurs:
- When the trustees (or their business) are in financial distress and they use the superannuation account for a short-term loan; or
- A promoter offers access through a scheme – often getting people to establish the SMSF and roll over their superannuation into the SMSF.
Illegal access to the SMSF's account or assets is not difficult to identify and generally will be picked up by your auditor. Where illegal access has occurred, not only is it likely that your retirement savings have been lost or impaired, but you are likely to face additional tax, penalties and interest, and be disqualified as a trustee. In addition, your name will be published online.
- Super generally only accessible at age 60 (retired) or age 65
- Illegal early access often involves financial distress or promoter schemes
- Illegal access leads to tax penalties, interest and trustee disqualification
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