Eligible members adversely affected by the financial impact of COVID-19 may apply to access up to a maximum of $10,000 for FY2020 and a further $10,000 from 1 July 2020 to 31 December 2020.
Where your client has received a successful determination from the Australian Tax Office (ATO) authorising the release of money from their SMSF, the following documents are now available to document the early release of super benefits for members affected by the COVID-19:
- Request Letter - From the member to the fund requesting the benefits to be paid as a lump sum;
- Trustee Minutes/Resolution - Approving the lump sum payment using the condition of release (Compassionate Ground - Coronavirus); and
- Confirmation Letter – From the trustee of the fund to the member confirming the benefit payment.
Compared to Class' standard lump sum report pack, these documents are specifically worded with reference to the ATO's determination as well as removing reference to PAYG withholding obligations as the amount is not subject to PAYG withholding and does not need to be reported on a PAYG payment summary.
You can download the template COVID-19 Early Access to Super Template "by downloading this template you agree and understand the Disclaimer below".
- Any information expressed in the documents does not purport to be any financial, tax or legal advice as we have not taken into account any of your or your client’s financial or tax objectives that are specific to you or your client’s circumstances.
- While effort has been taken to make sure the information is as accurate and relevant as possible, it is at best construed as general information only. These documents may not be suitable for other lump sum payments using different conditions of release.
- You should not rely on the information provided as advice, instead seek your own independent advice from appropriately qualified practitioners or conduct your own research.
- As some of the merge fields are currently not available on Class, only refer to the above template as a reference and manually update the highlighted merge fields where necessary.
For more FAQs please visit COVID-19: Super Related COVID-19 Measures - FAQs