ATO warns SMSF trustees against illegal early access to superannuation
Reminder of strict rules on using SMSF funds for personal or business expenses and related party investments
The ATO has reminded SMSF trustees that their SMSF must be operated for the sole purpose of providing retirement benefits for its members. This means SMSF trustees can’t use funds from their SMSF to pay for personal or business expenses. This is known as ‘illegal early access’ of superannuation, and severe penalties apply.
The ATO also reminds SMSF trustees that there are rules regarding what they can invest in when dealing with a related party.
The ATO has published a range of resources available to help SMSF trustees understand the rules on accessing their superannuation and ensure they (and their business, if any) comply with the rules surrounding SMSFs.
Superannuation is one of those areas that can be compared to a cart on a rollercoaster. Performance is constantly affected by the economic climate and shifting legislation that alters the benefits individuals and businesses can gain from super funds. Read more here about how Omnis Group can help.