Question:

Withdraw super to treat life threatening illness

Answer:

Recent changes are outlined below:

July 1, 2022

Loss carry back for eligible companies extended to cover 2023 income year.
Professional firm profits diverted to the professional's spouse or other associates to be reviewed under new Tax Office guidance.
Corporate collective investment vehicle legislative regime introduced.
Temporary full expensing of depreciating assets extended to include 2023 income year.
Depreciable assets of a company joining a tax consolidation group have tax costs setting rules modified for assets depreciated under temporary full expensing rules.

December 9, 2021

Reduced Pandemic leave disaster payment of $750 per week made available through to 30 June 2022.

August 5, 2021

COVID-19 Disaster Payments are non-assessable non-exempt income in 2021 income year and later. Payments phasing out as vaccination rates increase.

July 1, 2021

New Investment Engagement Service launched for businesses planning significant new investments in Australia.
Tax Office small business independent review service made permanent for businesses with turnover < $10m, for income tax, GST, exercise, luxury car tax, wine equalisation tax and fuel tax credits. Requested before amended assessment issued.
Small business income tax offset for individuals increased to provide a reduction of 16% for a tax payable up to $1,000.
Self-managed superannuation funds can now have six members, increased from four members previously.

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July 1, 2021

Some COVID -19 state and territory business grants received by small and medium enterprises are non-assessable, non-exempt income for 2021 and 2022 income years.
Certain state, territory and local government financial support for individuals and businesses suffering COVID-19 impacts made exempt where businesses have turnover less than $50 million and only in eligible programs.

March 31, 2021

JobKeeper payments scheme ended.

October 5, 2020

Boosting apprenticeship commencements subsidy (up to 50% of apprentice's wages) is assessable income.

June 4, 2020

Homebuilder grant for new home or substantial renovation construction is not subject to income tax.

April 1, 2020

COVID-19 cash flow boost payments are not subject to income tax

A member of a commercial, industry or self-managed super fund can apply to the Government for early release of funds on compassionate grounds to pay for medical treatment where they can’t afford to pay for it themselves and two doctors certify that the treatment:

Is not available in the public health system; and is necessary
To treat a life threatening illness or injury; or
Alleviate acute or chronic pain; or
Alleviate an acute or chronic mental disturbance.

The early release of super for medical treatment can include transport directly associated with that medical treatment.

An application can also be made to the Government for early release of super on compassionate grounds where you can’t otherwise afford to:

Make a loan payment to prevent foreclosure of a mortgage on your home;
Modify your home or vehicle for special needs arising from severe disability;
Pay for palliative care if you are dying;
Pay for a dependant’s palliative care if they are dying; pay for a dependant’s home or vehicle modifications to cater for a severe disability or their funeral expenses.

The application must be made to the Department of Human Services and include the necessary supporting documentation. The application form can be found at www.humanservices.gov.au/spw/customer/forms/resources/mo014-1405en.pdf

Reg 6.19A SIS Regulations 1994

NTAA Nov 14

Andrew and Tony Lovett

9 December 2014

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