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Covid19 early release

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Newbie

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im currently finishing my SMSF annual compliance.

My auditor has made mention of my covid19 early release. During the last financial year i made a withdraw from my SMSF due to financial hardship after being stood down from work. I withdraw cash from my SMSF comm sec account aswell as units of crypto currency from cold wallet. I was approved to withdraw upto $10,000 but withdraw less then this.

According to my auditor, i may be in breach of the early release as multiple withdraws from the smsf had taken place. My understanding is that i was allowed to withdraw upto the $10,000 limit regardless of how that was made up? Can i please have some clarification on this and if i am in breach how would i rectify?
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Hi @Cszmike

 

The timing of what you are describing is not clear. If eligible you were allowed to draw from one fund $10,000 and after July 1 2020 a further $10,000. @RachATO suggestion to contact us to discuss it may be a practical option if that is what did not occur.

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Hi @Cszmike,

 

One of the conditions for accessing the Covid-19 early release of super is that individuals could submit one application for the 2019-2020 financial year, and one application for the 2020-2021 financial year (ie a maximum of two applications, one within each respective financial year period).

 

If you've accessed your super more than once within a single financial period, then this may be in breach of the conditions. If you've made a mistake, you should contact us for further assistance as soon as possible so we can talk about the circumstances.

 

We look forward to your call.

 

RachATO

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Hi @RachATO

Thanks for responding to me.

I understand the application process, in my application for COVID-19 early release i requested withdrawls from my Industry Super Fund and SMSF.

When approved, Cbus paid me direct to my bank account. My SMSF withdraw was also deposited to my bank account but to make up the appoved withdrawl amount i needed to take cash assets and Cryptocurrency assets, by doing this, am i in breach?
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Most helpful response

Community Support

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Hi @Cszmike

 

The timing of what you are describing is not clear. If eligible you were allowed to draw from one fund $10,000 and after July 1 2020 a further $10,000. @RachATO suggestion to contact us to discuss it may be a practical option if that is what did not occur.

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Newbie

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Hi @MarkATO

To clairfy,

I applied for Covid19 Early Super Release. As per ATO application process i nominated the Super funds id like to withdraw from, one being Cbus the other being SMSF across both funds a total of $10,000 was requested and approved for withdraw.

The cbus funds were directly deposited into my bank account.

The SMSF were made up of Cash Assets and Cryptocurrency Assets and also paid to me.

In total the amount withdrawn was no greater than $10,000 across both funds.

My question is, am i allowed to be paid from my SMSF the allocated amount approved by the ATO which was made up of Cash Assets and Cryptocurrency Assets? My SMSF individual auditor is asking whether that was an acceptable withdraw as ive been paid from multiple assets.

Ive spoken with the ATO both SMSF and COVID19 Teams, neither one can give me a confirmation on whether it is acceptable or not as current legislation or websites do not clairfy what types of payments are acceptable for Covid19 Early Super Release.
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Community Support

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Hi @Cszmike 

 

A similar question was asked in our Community back in April. You can check out our response here:

 

Super early access - cash vs cryptocurrency

 

You will see that what you are describing is known as an in-specie payment. Super lump sums cannot be made in-specie where the payment relates to super released in accordance with the COVID-19 measure. 

 

This means that your COVID-19 early release of super payment can only be made as a cash payment. We suggest that you ask your SMSF auditor how they would like you to rectify this. If they're not sure what action would be appropriate, they can take advantage of our help and resources.