Early release of super on compassionate grounds: ATO
From 1 July 2018, responsibility for the administration of the early release of Super benefits on compassionate grounds will be transferred from the Department of Human Services (DHS) to the ATO.
Currently, the ATO is responsible for most of an individual’s interactions with the Super system. As such, this change will enable the ATO to build on these existing relationships. It will also mean they are able to provide a more streamlined service.
How will this be better for people who need to make a claim:
A key improvement under this new process is the ATO providing electronic copies of approval letters to superfunds. This will happen at the same time as the letter going out to the applicant. The intention here is to mitigate fraud risk and remove the need for superfunds to independently verify with the Regulator.
Individuals will also be able to upload required documentation at the same time with their application. Currently this is a ‘two-step process‘, creating a slower turnaround time.
Since DHS will accept early release applications up until 30 June 2018, there will be a short transition period where DHS will continue to process those existing applications and complete any necessary reviews.
Nonetheless, from 1 July 2018 the ATO will process all new applications.
For More Information:
If you need to make an early release of Super on compassion grounds please contact us and we can help you through this process. There maybe other alternatives to accessing your assets that you may not have considered.
Source: National Tax and Accountants’ Association Ltd