The Corona virus has some relief measures which affect Superannuation. The ATO has released 3 videos explaining more on the major impact on SMSF’s.
Temporary Early Access to Super
In the video below, the self-assessment process towards the temporary early release to Super and the importance of keeping records of your eligibility is explained by the ATO in details. In addition, they also outline the following:
− The penalties that can take place for false or misleading information
− Illegal early access to Super concerns
− MyGov application process and its details
Members can access up to $10,000 of their Super before 1 July 2020. An additional $10,000 can be accessed from 1 July 2020 until 31 December 2020. For more conditions of release, please click here.
For details, see the ATO’s page on Early Release of Super funds due to Covid-19:
Changes to Pension Drawdowns
Trustees should be aware that Government has reduced the minimum annual payment required by 50% in the 2020 and 2021 Financial years. The following video shows the talk between the SMSF Association and the ATO, some of the topics discussed are:
− The reduction on the drawdrowns and its application to transition to retirement income streams and the market linked pensions.
− Providing evidence of a Member’s reduction in pension payments on the minutes
− Lump sum rules
The temporary reduction of 50% also applies for pensions and annuities commencing part-way in the 2020 and 2021 financial years. For further information on minimum drawdown amount, please see here.
Ongoing Trustee Responsibility
As a Trustee of an SMSF, you are legally responsible for your Fund. This video shows the SMSF Association and the ATO pointing the ongoing responsibility of the Trustees and how you can ensure to be at the best place during the COVID-19. The following are covered in this video:
− Annual returns lodgements deferrals
− Investment Strategy up to date, that reflects your current types of investments
− Related party and arm’s length
− Rental relief for tenants of an SMSF’s property
More info on COVID-19, please see here.