How do I record a COVID-19 withdrawal?
The Federal Government introduced measures as part of their Covid-19 response to allow members to withdraw up to $10,000 twice from your super fund, once from 20 April to 30 June 2020 and once for the 2020/21 financial year. You need to apply via your myGov account and wait for the ATO-issued letter of approval.
Before adding the Covid-19 withdrawal, you will need to create an interim period in Mclowd first as at the date before the payment. If the Covid-19 withdrawal was made on 1/9/2020, then the interim period would end 31/8/2020. If you do not create an interim period, then you will not be able to complete this process.
If you have met the above requirements and wish to record the Covid-19 withdrawal, then please follow the instructions below:
On the Menu screen, choose More and then select Member Accounts.
You will be presented with the Member Account Administration screen where you will see a list of members of the Self-Managed Super fund.
On this screen, for the member concerned, under Action choose Select, and then under Payments select Benefits Paid.
The Member Payment screen will then display a warning.
You will need to complete the fields on this screen as described below:
- Enter the Date of Payment of the transaction (date of refund)
- Enter the Description for the transaction – say “Covid-19 withdrawal”
- Enter the Payment Amount
On the right-hand side of the screen, you should do the following:
- The Payment Type will be prefilled with Benefits Paid (Lump Sum withdrawal).
- In the From Account, select the Bank account the Covid-19 withdrawal was withdrawn from. In this example, it is the bank account named ‘CSF’.
- In Conditions of Release, select Compassionate Grounds – Coronavirus. You may see a yellow highlighted message which states that you must ensure this member meets the criteria for release.
You will then be presented with a Member Payment – Calculation screen.
This screen will show:
- Starting balances
- Covid-19 withdrawal payment proportional amount
- Remaining balances
You should ensure that the From Account is the correct bank account to be used and that the Total Payment was correct.
If you are satisfied with the information, then select Confirm Payment.
You have now successfully completed the Covid-19 withdrawal process.