Don’t be tempted to dip into your SMSF for bills or presents this holiday season

While the holiday period can be a wonderful time of year, we all know it can stretch us financially. Despite this, the ATO has reminded SMSF trustees that unless they have met a condition of release, dipping into their SMSF to pay bills and buy gifts is not an option.

Generally, an SMSF member can only withdraw money from their SMSF bank accounts if they have met one of these conditions:

• Reached preservation age and retired
• Turned 65 years of age.

There are other limited circumstances when a member may access their retirement benefits, however the need for additional cash during the holiday season is not a valid reason.

If you have already taken money from your SMSF bank account and you don’t meet either of those conditions above, the ATO will consider this to be illegal early access, and you may be liable for additional tax, fines and penalties.

Read the rest of our December quarterly superannuation update to get the latest superannuation insights. From ATO news to lost super, this update is essential for self-managed super fund trustees and fund managers.

In this quarter's update:

• ATO Reminders: The Australian Taxation Office (ATO) has reminded SMSF trustees not to dip into their SMSF funds for holiday expenses unless they meet specific conditions of release, such as reaching preservation age and retiring or turning 65.
• PAYG Instalments: Trustees can vary their pay-as-you-go (PAYG) instalments to help manage cash flow and avoid large tax bills at the end of the financial year.
• Asset Valuation: SMSF trustees must ensure their fund assets are valued at market value, based on objective and supportable data.
• Upcoming Lodgement Dates: Important dates for lodgement of tax returns and payment of super guarantee contributions are highlighted.
• Q&A with Diana Wong: The update includes a Q&A with Diana Wong , a Senior Manager in BDO's superannuation team, providing insights into the current superannuation landscape.

?? Read the full update to find out more

Watch our Wealth Space: Holiday special webinar for the top tips from 2024

Corporate Reporting Insights - December 2024

In our overview video, Aletta Boshoff walks us through the 10 topics discussed this month spanning Australian financial reporting developments, IFRS? Accounting Standards developments and sustainability.

Visit December's overview page to see all the updates and resources created by our experts and stay up to date with the latest developments in corporate financial and sustainability reporting.

Watch the latest IFRS & Corporate Reporting webinar

Earlier this year, the International Accounting Standards Board published IFRS 18 Presentation and Disclosure in Financial Statements, replacing IAS 1 Presentation of Financial Statements as the primary source of requirements for financial statement presentation. Watch Aletta Boshoff , IFRS and Corporate Reporting National Leader, BDO, and Kevin Frohbus , Advisory Partner, BDO, explore the key changes and implications of IFRS 18 for your organisation’s financial reporting.

More insights to explore

From our most recent articles to industry reports, keep reading to discover BDO's insights and ideas, from people you can trust.

Upcoming events and webinars

Visit our website to see more upcoming events and webinars from BDO in Australia.

Sustainability - Climate-related disclosures in Australia

Wednesday 18 December, 11:00am - 12:00pm AEDT

It’s official, Australia’s mandatory climate reporting starts 1 January 2025. In our final sustainability webinar of the year, join Aletta Boshoff and Kevin Frohbus as they summarise the essential developments in legislation and sustainability reporting standards from the past 12 months. Register now to ensure you know what climate-related disclosures are required for your organisation.

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IFRS & Corporate Reporting webinar series launch 2025

We’re pleased to launch our 2025 IFRS & Corporate Reporting webinar series. Join our experts, Aletta Boshoff , Kevin Frohbus and Dean Ardern , as they keep you updated with the financial reporting and accounting standards changes that will shape the future of your organisation. The series launches in January with 'What’s hot and what’s not in 2025'.

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