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Getting money out of super

In specie payments

Section: 12.15

A lump sum payment may be in the form of 'cash' or an in specie payment, subject to the particular fund's governing rules. An in specie payment is made with fund assets (eg shares) rather than money. When making an in specie payment, trustees must be able to substantiate the value of the relevant asset or assets for both SIS and taxation purposes.

Payments that cannot be paid in specie are payments that relate to:

  • severe financial hardship
  • a former temporary resident
  • compassionate grounds, or
  • a pension or annuity.

Where an SMSF trustee holds a collectible or personal use asset (eg, artwork, wine, motor vehicles) that it wishes to transfer to a related party as an in specie payment, the asset must be valued at market value by a qualified independent valuer and transferred at that value.

Last modified: Wednesday, July 24, 2019