SMSFs apply for $280m in early super release payments
Around 28,000 applications for early release of super have been submitted by SMSF members so far, according to new ATO figures, which represents only a small proportion of the total individuals approved for early release of super.
According to ATO statistics provided to SMSF Adviser, at 7 July 2020, around 2.5 million individuals had been approved for early release of super across both the 2019–20 and 2020–21 financial years, with the total amount applied for around $28.1 billion.
Within these figures, around 28,000 applications for early release of super have been made from 17,000 SMSFs, totalling around $280 million, the ATO stated.
This represents around 3 per cent of all SMSFs based on the ATO’s SMSF quarterly statistical report for December 2019.
The ATO has previously stressed the importance of members ensuring they meet eligibility criteria before applying to withdraw amounts from the early release of super scheme.
It has also stated it will be using a data-matching program to help confirm eligibility and identity or misleading information in applications.
For SMSF clients looking to apply for a second payment, Smarter SMSF chief executive Aaron Dunn said it is important they reassess their circumstances this financial year before applying for the 2020–21 early release payment.
“This is a really important point to remember. The individual may have qualified at the end of April or early May. However, they may now be back at work and we now need to reassess how their circumstances look,” Mr Dunn said.
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates. Miranda has also directed SMSF Adviser's print publication for several years.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.