We have released the findings of a new program that estimates the size, scale and trajectory of superannuation illegally accessed from self-managed super funds (SMSFs) before a condition of release has been met.
It has been estimated for the 2020 year, $381 million of super has been illegally withdrawn by trustees. In the 2021 year, we estimated $256 million of super has been illegally accessed. Our analysis also found SMSFs entered into over $200 million in prohibited loans in each of these years.
The illegal early access estimate follows the same rigour and best practice approach used in other tax gap programs allowing us to measure the performance and health of the tax and super system.
The process involves an independent external panel who review not only the method, but also the calculation to ensure they are reliable enough to be published.
The self-managed superannuation funds illegal early access estimate highlights why as a regulator we are concerned with illegal early access and why it's important for regulators and industry to ensure SMSFs aren’t used as a vehicle to access super illegally or to provide short-term finance.
As with other tax gap programs, we will be undertaking the illegal early access estimate on an annual basis.
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