.
The ATO has reminded SMSF trustees that releasing benefits to members who have not met a condition of release may result in them being held liable for those individuals’ actions.
In a post on its website, the regulator stated there were only a few situations where early access to super was permitted and taking money from an SMSF without meeting these conditions could result in serious penalties.
“If you’re a SMSF trustee and you illegally release benefits to a member who hasn’t met a condition of release, you may face administrative penalties and be disqualified as an SMSF trustee,” it said.
“Illegal early access is the most significant regulatory risk impacting the SMSF sector, with an estimated $250.1 million in illegal early access from SMSFs in the 2021/22 period. It can have a significant impact on an individual’s retirement savings, result in additional tax, penalties and interest.
“To reduce illegal early access through SMSFs, we provide support and guidance on obligations as a trustee, review new registrants and remove non-compliant SMSFs from Super Fund Lookup. If an SMSF is removed from Super Fund Lookup, it cannot receive contributions and may face liquidity issues.”
The ATO also called on SMSF trustees or members who have been involved in accessing benefits early to disclose their activity to the regulator, adding it would discover the activity eventually.
“If you have illegally accessed your super or been involved in a scheme promoting illegal early access, contact us immediately using our voluntary disclosure service,” it said.
“We will take your voluntary disclosure and circumstances into account when determining any penalties.
“We also investigate late or non-lodgements of SMSF annual returns as that can be an indicator to us that SMSF members may be illegally accessing their super early and it raises questions about the trustees’ ability to fulfil their obligations and the purpose of having an SMSF.”
In a separate post, the ATO flagged its online content for trustees and auditors will change after conducting a review of the two sections on its website directed at those groups.
“The refreshed SMSF web content will go live in the coming weeks and aims to provide a user-friendly experience, reduce duplication and streamline navigation, making it easier for you to find the information you need,” it said.
“While much of the content has been rewritten and the layout and navigation has changed, our interpretation of the law remains the same.”
Following the change, regular users of the website should check and update any bookmarks they frequently use.
“We understand that many of you rely on bookmarked pages for quick access. While we are committed to maintaining these URLs, there may be occasions when you will need to update your bookmarks. After the new content has been published, we recommend reviewing your bookmarks to verify they are correctly linked,” the ATO said.
March 26, 2025
Jason Spits
smsmagazine.com.au
Director
BEc (Acc), MBA, CPA, FFin
David has been in the Financial Services Industry for nearly 30 years. He was one of the founding Directors of the successful Financial Planning and Stockbroking Practice, Henderson Gregory Forrest, for a decade. Prior to that, he held senior roles in companies such as ING, KPMG Accountants and AMP. David was previously Chairman of OAMPS Superannuation Trustee Board and currently serves as an independent Board Director for several companies.
David’s extensive experience in all forms of superannuation, including Self Managed Super Funds (SMSF), Defined Benefit Funds, retirement funding through Account Based Pensions, stockbroking with a focus on Direct Share Investment, Taxation/Remuneration Planning, Centrelink, Aged Care and business management, equip him to advise expertly on all aspects of Financial Advice.
Those with a particular interest in superannuation/SMSFs, direct share investment, salary packaging or applying for the Centrelink Pension will find his knowledge and ability in formulating and implementing creative, logical and simple wealth creation strategies a valuable asset.
David maintains a strong personalised client service focus, providing tailored solutions for clients.
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Contact:
David Forrest is an Authorised Representative of Integrity Financial (SA) Pty Ltd ABN 16 133 921 187 — AFSL No 334846
Business Finance Manager
B Bus (Acc), CPA
Michelle’s career has spanned across the Financial Services, Retirement Living and Aged Care industries working in the private sector, not for profit and more recently with the state government for over 20 years. Her experience extends to many facets of the financial services industry, having worked in superannuation administration, technical support and financial planning practice administration.
Commencing with AMP and subsequently working in commerce and accounting roles with companies such as Brambles, Adelaide Bank Retirement Services, ECH Inc and SA Health and Wellbeing, Michelle returns to financial services after working in practice financial management at Henderson Gregory Forrest. This wide range of experience from senior accounting and management roles has provided Michelle with a strong background in business administration.
With an astute financial acumen and keen interest in business improvement strategies, Michelle ensures the smooth running of the Integrity Financial Advisory practice providing valued management support to our personalised client service focus.
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Contact:
Client Service Manager
Jasmine has worked in the financial services industry for over 12 years in all areas of client administration, working with David since 2013.
Jasmine has extensive knowledge and experience in client service including implementation of advice, portfolio reporting, assisting with the establishment of Self Managed Super Funds (SMSFs), term deposit management and a long history of helping clients with their enquiries.
Jasmine’s attention to detail, yet gentle approach, means she is able to solve the trickiest of questions for our client community.
Jasmine has gained her Certificate III in Financial Services qualification.
Contact:
Senior Client Service Manager
Merrilyn has worked in the financial services industry for over 11 years in all areas of client administration, and is a new addition to our client services team, returning from Melbourne to join the team in June 2019.
Merrilyn has extensive knowledge and experience in client service including implementation of advice, managed fund administration, assisting with the establishment of Self Managed Super Funds (SMSFs) and process improvement for the previous practices she has worked with. Merrilyn’s experience with direct shares constitutes the other part of our administrative support for direct equity investments.
Merrilyn’s warm and caring nature continues to endear her to our clients and she has already established herself as a valued member of our team.
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