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Questions & Answers – Release Authorities
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+ How do I elect to release funds from my SMSF?

If you prefer to release funds from the SMSF, you need to complete an election form and send it to the ATO for processing via one of the following methods:

  • If you have a MyGov account linked to ATO services, it is easier and quicker to sign in to your MyGov account to complete the election form online (preferred method by the ATO);
  • Require your personal tax accountant to complete the election form for you using their online services for agents;
  • Obtain and complete a paper copy of the election form by phoning the ATO’s publications ordering service on 1300 720 092.

We caution that it is a breach of the SIS regulation if you release funds from the SMSF prior to receiving the Release Authority from the ATO.

+ I have received an inbox message from ESUPERFUND in relation to a Digital Release Authority SuperStream message, I have no idea why I am required to release funds from my SMSF.

You should have been contacted by the ATO directly when any of the following event(s) occurred:

  • You have exceeded your concessional contributions cap (ECC);
  • You have exceeded your non-concessional contributions cap (ENCC);
  • You are required to pay the Division 293 tax applicable to high-income earners (Div 293);
  • You applied to release funds from the SMSF under the first home super saver scheme (FHSS).

You have either elected to release funds from the SMSF or the ATO may have made the choice for you as the default option.

If you do not understand why your SMSF received the Digital Release Authority from the ATO, please contact the ATO directly.

Please note that ESUPERFUND does not have the authority to communicate with the ATO on your behalf as this matter is related to your personal tax.

If you have a tax agent to manage your personal tax affairs, you may require your personal tax accountant to contact the ATO on your behalf.

+ Who will arrange the payment to the ATO? Will the ATO automatically direct debit the amount from my SMSF bank account?

No. You will need to pay the amount to the ATO from your SMSF bank account in accordance with the payment instructions provided by ESUPERFUND in the inbox message. Please note that ESUPERFUND does not have transaction access to your SMSF bank account and we are unable to authorise any payments on behalf of your SMSF.

+ Why are the payment instructions advised by ESUPERFUND different from the Bpay instructions advised on the ATO determination letter?

The EFT instructions advised by ESUPERFUND are different from the Bpay information detailed on your ATO determination letter.

We clarify that the Bpay information should only be used by individuals who choose to pay the ATO using their personal money.

Given you elect to release funds from your SMSF, you need to arrange the payment in accordance with the EFT instructions provided by ESUPERFUND in the inbox message.

+ I have insufficient cash in my SMSF bank account, what should I do?

We advise that you must transfer the amount to the ATO in one single transaction otherwise the Release Authority process may fail. The worst consequences would be that the ATO has to reject any funds transferred and return them to the SMSF bank account.

If your SMSF has insufficient cash, you may need to convert some investments to cash and then transfer the amount in one single transaction.

Alternatively you may top up cash via injecting contributions to your SMSF. Please note the member must be eligible to make the contribution and the contribution must be within the member’s contributions cap. For more information on contribution rules and caps, please click here.

+ The ATO payment amount exceeds my SMSF bank’s daily transfer limit, can I transfer funds in several transactions?

No. We advise that you must transfer the amount to the ATO in one single transaction otherwise the Release Authority process may fail. The worst consequences would be that the ATO has to reject any funds transferred and return them to the SMSF bank account.

If the amount exceeds the daily transfer limit of the SMSF bank, you may need to increase the daily transfer limit or contact the SMSF bank directly for alternative options such as a fax authority.

+ How much time do I have to pay the ATO?

The ATO requires the Superfund to action the Release Authority within 10 business days from the issue date of the Digital Release Authority.

+ I have made the payment to the ATO, why has ESUPERUND not notified the ATO of my payment?

If you have already completed the electronic funds transfer, please refer to the table below for some common reasons why we are unable to identify the withdrawal transaction and follow the corresponding actions required.

Common Reasons Actions Required
You transferred funds from a manual bank account (incl. CBA Accelerator) and the transaction has not been added to the Client Portal.

Please add this transaction via the Interim Checklist - Bank page and enter the Payment Reference Number (PRN) at the narration field.
The transaction can be found in the Interim Checklist - Bank page but the bank narration does not display the full Payment Reference Number (PRN).

If the transaction is editable (e.g. paid from a bank account with manual datafeed), please update the narration to include the full PRN.

If the transaction is non-editable (e.g. paid from a bank account with automatic datafeed), please contact ESUPERFUND via the Client Portal Inbox to resolve this matter.
Bank charge is included in the withdrawal amount so the amount withdrawn from the SMSF bank account was greater than the release amount advised in the inbox message but the ATO should receive the correct amount.

Please visit the Interim Checklist - Bank page and code the transaction as “Split into Multiple Codes” and then enter the bank charge and release amount as two separate transactions.

For the release transaction, enter the PRN at the narration field.
The amount withdrawn from the SMSF bank account was different from the release amount advised in the inbox message due to human errors.

Please contact ESUPERFUND via the Client Portal Inbox to resolve this matter.
Multiple transfers were made instead of a single withdrawal.

Please contact ESUPERFUND via the Client Portal Inbox to resolve this matter.

We caution that if no payment can be identified by ESUPERFUND after 28 days from the issue date of the Digital Release Authority, we will automatically forfeit the Digital Release Authority SuperStream message and notify the ATO that the Digital Release Authority is unsuccessful.

+ I already transferred funds to the ATO before I received the payment instructions from ESUPERFUND, what should I do now?

We caution that it is a breach of the SIS regulation if you release funds from the SMSF prior to receiving the Release Authority from the ATO. As a result, your SMSF’s audit report may be qualified to detail this occurrence.

Generally, you may consider reimbursing the same amount to your SMSF bank account as one of the rectification options so in the end you used your own money to pay. For other options, please contact ESUPERFUND via the Client Portal Inbox.

+ I have previously confirmed NOT to release funds from my SMSF / I received the notification from ESUPERFUND advising the Release Authority process has failed, can I still release funds from the SMSF?

No. The previous Digital Release Authority SuperStream message has already been forfeited and it cannot be revoked. You may consider using your own money to pay on this occasion.

If you still wish to release funds from your SMSF, please contact the ATO directly and request a new Digital Release Authority to be issued to your SMSF.

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General Advice Warning

No Advice Express or Implied: The contents of this website are of a general nature only and have not been prepared to take into account any particular investor's objectives, financial situation or particular needs. ESUPERFUND does not provide financial product advice or recommend any financial products either expressly or implied. ESUPERFUND expressly states that it does not recommend, represent as suitable, or endorse any financial product or service available through ESUPERFUND. This applies equally to those financial products which are established for your SMSF when you become a client of ESUPERFUND. Any information provided in relation to any financial product or service available through ESUPERFUND is factual information only about the operation of the account and how data is made available to ESUPERFUND. Where this website refers to a particular financial product then you should obtain a Product Disclosure Statement (PDS) relating to that product and consider the PDS before making any decision about whether to acquire the product. We also recommend that you should seek professional advice (see below) from a financial adviser before making any decision to purchase any financial product referred to on this website. While the sources for the material are considered reliable, responsibility is not accepted for any inaccuracies, errors or omissions.

Seek Professional Advice from a Financial Adviser: ESUPERFUND is a no advice model and does not provide financial, legal or tax advice to clients. We recommend that you seek appropriate professional advice in view of your personal circumstances. A licensed financial adviser will consider your personal situation and make a recommendation suitable to your financial needs. All information detailed on our website is purely factual and is general in nature. Accordingly, you should not rely on it. It should always be remembered that Trustees are legally responsible for all the decisions made even if you obtain advice from a Financial Planner. Whilst a Financial Professional can provide advice and assistance you are ultimately responsible for the Fund.

Fees: Fees relating to operating your SMSF with ESUPERFUND are detailed on our fee page here. When setting up a SMSF it is important to understand that additional fees may apply that must be carefully considered prior to making a decision to setup a SMSF including an ATO Supervisory Levy, Company Trustee Setup Fee (where applicable), and Investment Fees.