Clients may need to have early access to super in limited circumstances. Due to COVID 19, those who are eligible can apply to access up to $10,000 of their super before 1 July 2020 and a further $10,000 from 1 July 2020 until 24 September 2020. This article demonstrates how early withdrawal can be processed in this circumstance as well as other conditions.
Please note BGL does not provide any tax advice. To be compliant, please check on ATO - Early Access to Super
It is advised that you have completed The Create Entries Process prior to posting a withdrawal of balance partway through the year. This will ensure member balances are up to date prior to the withdrawal.
|From the Main Toolbar, go to Accounting.||
|Select Transaction list||
1. From the Transaction List screen, select New Transaction. From the drop-down list, select Bank Statement.
2. Input the date of the transaction and a reference number (Simple Fund 360 will automatically produce a reference number, but it is editable). You can also include a description of the transaction in the Description box.
3. Under the Account heading, select the bank account from the Select an account box. Click on the next account box. Begin typing and search for account 46000/MEMBERCODE.
5. In the Rollover Payment Details Panel below the transaction, select Early access to super for Type of Payment. Note this payment type will be available only for non-pension account. For more details on other types of payment, please also check How to Enter Rollover or Lump Sum Payments
6. Special Condition of Release field will display, once "Early access to super" is selected. Select from the drop-down options Coronavirus - Early Release of Superannuation or other conditions where applicable.
7. The rest of the fields will be auto-filled, including and . Review the details and select to finalise the transaction.
1. The Coronavirus - Early Release of Superannuation option will NOT be available before 20/04/2020 and a warning message below will display if the withdrawal amount is more than $10,000 under this condition.
2. A message will display to remind users of the preservation components to be withdrawn from.
Frequently Asked Questions
1. Which preservation components can the Coronavirus Early Release payment be withdrawn from?
When posting transaction for early release payment due to Coronavirus for Accumulation account or Transition to Retirement Pension (TRIS), ensure Preservation components are entered correctly so they are withdrawn from Preserved or Restricted Non-Preserved components only.
2. Are amounts released from TRIS under compassionate grounds due to the Coronavirus, subject to the 10% maximum limit?
The 10% maximum limit for TRIS still applies to the Coronavirus early release of Super. Please ensure early release payments that are withdrawn from Preserved or Restricted Non-Preserved components do not exceed the 10% maximum limit.
As a reference to ATO guidance, a member whose TRIS comprises preserved or restricted non-preserved benefits may be able to commute an amount back to accumulation phase (in accordance with the rules of the fund and the pension) to allow a withdrawal under the compassionate ground due to coronavirus.
3. How can I access documents for COVID-19 Early Release of Super?
Please refer to our Smarter SMSF Document Integration article, and select the Covid-19 tab. The article can be accessed by clicking here
4. PAYG Summary & Lump Sum Pre-payment prepared by BGL?
You will not need to pay tax on amounts released under COVID-19 early release of super and will not need to include these amounts in your tax return thus BGL will not prepare any documentation for this transaction type.