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Re: Early Release of Super & Family Trust Distributions

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Initiate

Views 184

Replies 3

Hi,

 

A client applied for and was granted early release of their super under the covid 19 early release provisions, as they were unemployed. 

If we now distribute a capital gain to them this year of approx $25000 will this have any affect on the early release of their super, ie will they have to repay it. They have no other income this year and the capital gain will be streamed for tax purposes only, no cash will be available to the beneficairy.   

Regards

S

 

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Dynamo

Replies 1

Hi @S-E,

 

As long as the employee met one of the eligibility ciritera for the early release of super, the capital gain income will not have any effect on their early super eligibility.

 

Hope this helps!

3 REPLIES 3

Most helpful response

Dynamo

Replies 1

Hi @S-E,

 

As long as the employee met one of the eligibility ciritera for the early release of super, the capital gain income will not have any effect on their early super eligibility.

 

Hope this helps!

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Initiate

Replies 0

Thanks Stefan

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Devotee

Replies 0

@S-E, you realise that by distributing someone income from a trust, they have a legal right to that money...?? I know it happens all the time, but the trust can't deny someone access to money that has been distributed to them - so if having that cash makes them inelgible, then having the distribution allocated to them would also.

 

Not saying it does, just saying that the fact it is a "tax only" distribution doesn't change anything.