MyGov troubles arising with early release of super
With some newly established SMSFs and late lodgers experiencing troubles with the application process for early release of super on myGov, a technical expert has outlined some fixes for these two scenarios.
SMSF Association deputy chief executive Peter Burgess said some SMSF trustees have been encountering problems with the myGov screens when applying for the early release of super through the ATO’s online services. There are two common issues arising, he said.
The first scenario is where the member’s account appears on myGov but no balance appears. This could happen where it’s a newly established SMSF that hasn’t yet lodged its first return, or it may be the case that it’s only recently been lodged.
“The client can still withdraw an amount from their fund, even though it’s still showing as a zero balance,” he said at the SMSF Association Technical Day. “The trustees will need to ensure they have a sufficient balance so that the ATO will release the determination.
“It won’t stop the client actually withdrawing an amount from their fund, even though they have an SMSF account balance appearing on myGov with a zero balance.”
The other scenario, he said, is where no SMSF account appears at all on myGov.
“Now this could happen because the fund has an overdue annual return. Now as we know, if we’re late lodging our annual return, the status will change to regulation details removed,” he said.
“That will result in the fund not appearing on the myGov screens. So, if you have a client in that situation where they have been late lodging their return but they do need to access their money early, then they need to contact the ATO. The ATO won’t stop the release because the return was late, but they do need to contact the ATO.”
Mr Burgess noted that as of mid-July, 23 per cent of SMSFs were yet to lodge their 2018–19 annual return.
“So, we may find a number of funds in this situation who are trying to access their money early and not seeing their fund appear at all on the myGov screen because they were late lodging that return,” he said.
Miranda Brownlee
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 also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.
