The federal government today released exposure draft regulations that support the transfer of the early release of superannuation benefits to the ATO.
Revenue and Financial Services Minister Kelly O’Dwyer said the regulations would provide the necessary administrative changes to facilitate the transfer of responsibility for the early release on compassionate grounds from the Department of Human Services to the ATO.
Currently, only the applicant receives a notice of authorisation for the early release of superannuation benefits on compassionate grounds, meaning to verify the notice, superannuation trustees need to independently confirm the authority and amount to be released with the regulator.
However, the new regulations would stipulate the tax office should directly notify a member’s super trustee when it has authorised the early release of funds.
“The regulations require the ATO to directly notify a member’s superannuation trustee when it has authorised the early release of funds, removing the need for that trustee to independently confirm the amount authorised for release,” O’Dwyer said.
“At what are often times of great stress and concern for the individuals involved, these changes will cut the administrative burden for superannuation trustees and will help successful applicants receive their authorised funds sooner.”
She said the regulations would complement the Treasury Laws Amendment (2018 Measures No 1) Bill 2018, which was introduced into Parliament on 7 February. However, they were unrelated to the ongoing review of the early release of super benefits.
The exposure draft regulations are now open to consultation, with submissions due by 23 March.