Around 1,000 individuals will have their assessments re-accessed this financial year due to the early release of superannuation funds by promotors.

Penalties to the SMSF member includes taxing the recipient’s distribution at their marginal rate (including the fee paid to the promotor) plus penalties.

In a Speech by Neil Olesen, Deputy Commissioner of Taxation, it was advised that 202 self-managed super funds were suspended from receiving rollovers within the last 6 months & bank accounts holding over $1.5 million in benefits were frozen as it was suspected that the funds would be released illegally.

The ATO are working closely with APRA to strengthen the SMSF rollover process to prevent non-members of the fund accessing benefits.