#9252
Awan Hammad
Participant

    Hi Signorina

    I assume the member can receive the taxable member contribution (eg is under age 67).

    In relation to permanent incapacity it is defined in SIS regulation 1.03C as:

    “For subsection 10(1) of the Act, a member of a superannuation fund or an approved deposit fund is taken to be suffering permanent incapacity if a trustee of the fund is reasonably satisfied that the member’s ill-health (whether physical or mental) makes it unlikely that the member will engage in gainful employment for which the member is reasonably qualified by education, training or experience.”

    The ATO states at:

    Conditions of release
    What are the conditions of release a member must satisfy to receive self-managed 
    super fund (SMSF) benefits.

    Permanent incapacity

    A member’s benefits may be released if they cease gainful employment and you’re satisfied that the member is unlikely, because of ill health, to engage in gainful employment that they are reasonably qualified for by education, training or experience. There are no cashing restrictions on payment of benefits.”

    If the permanent incapicty condition is met then yes the member can access their superannuation as the condition has nil a cashing restriction as per Schedule 1 of SIS. The condition is that the “trustee of the fund is reasonably satisfied that the member’s ill-health (whether physical or mental) makes it unlikely that the member will engage in gainful employment for which the member is reasonably qualified by education, training or experience”.

    Thanks

    SMSF AAA

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