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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.
@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.