Early Access to Your Super

[Deactivated] on 05/04/2020 - 21:26
Last edited 05/04/2020 - 22:03

This will be available as from the 20th of April but you can register your interest now by logging in to your myGov account and following the Intention to access coronavirus support instructions.

Has anyone done it or planning to do it?

Is your situation so dire that you couldn't make ends meet without it?

JJB

Added a poll : Are you going to access your super? Why?

Edit: The tax loophole

To take advantage of the tax loophole, beneficiaries would need to fit into a rather specific cohort of earners:

  • qualify for early release of super, which means having been made redundant in the coronavirus crisis or, in the case of sole traders, having lost at least 20 % of turnover.
  • a working-age individual who is on 9.5% compulsory super contributions,
  • has an annual salary below $158,000,
  • has made no previous voluntary contributions to super in 2019-20, and
  • who elected to make a “simultaneous” (within 2019-20) pre-tax contribution to and withdrawal of the maximum possible $10,000 from super over the next three months.

As long as an individual in this situation has an annual income of approximately $30,000 or more, there is a prospective tax saving from rearranging his or her financial affairs over the next three months.

Poll Options

  • 38
    Yes, I need the money.
  • 19
    Yes, for the tax loophole.
  • 145
    Nope, terrible idea.
  • 11
    Other
Financial Superannuation

Comments

    • whooah1979 on 09/06/2020 - 23:32

      You're eligible as long as your work hours is reduced by 20% or more.

      • StonedWizard on 11/06/2020 - 13:29

        @Whooah1979 - I asked the ATO if I qualify.

        All they said is it’s self assessed and to keep evidence in case they request it.

        When I asked what evidence they require, the person said they don’t have any examples of it. As they’re still working on the legislation.

        What a shamble of a policy. If the ATO can’t provide proper framework and structure. They shouldn’t be able to penalise people.

        • LFO on 22/06/2020 - 19:01
          +1

          IF you pay taxes on your casual employment as well
          AND casual hours have been reduced
          THEN you are entitled to your own Super.

          No one will be penalized.
          A bigger worry is the whole economy going belly up, so using your own bloody Super is fine.
          After all is getting your own Super now or later on (old age, moving overseas, special circumstances, etc) is about the same.

          Now is as good as later.
          Now is the present. Later is the unknown future.
          Now is better :-)

  • User210686 on 21/06/2020 - 14:33
    +1

    Just saw this article “ 2 million Aussies at risk of $12k fine“

    https://au.finance.yahoo.com/amphtml/news/ineligible-aussies…

    Wonder if this is true or just to deter some people.

    • bluesky on 21/06/2020 - 16:23

      ATO has been saying this from the beginning, that they would crackdown. They are just trying to prioritise getting the help to those who need it, hence the ease to access these measures.

      • Ash-Say on 21/06/2020 - 16:53

        When exactly gov announced super early Access Scheme?

        • bluesky on 21/06/2020 - 17:53

          I cannot remember exactly, sometime in March, April. I think access was around the end of April?
          In the design and implementation, compliance/fraud issues were already anticipated. Look under "fraud" and "compliance" in the document. In one of the points,

          Q: Will there be a claw back function if the money was incorrectly released or there was some
          fraudulent activity?

          A: Individuals will be warned during the application process about the penalties that apply to them if making a false and misleading statement. Any particular cases of concern will be managed by the ATO with the individual.

          Also, as far back as April 21, this Guardian article has this:

          “The Australian Tax Office has assured us there is a robust compliance regime in place and those who deliberately flout the rules could face severe penalties,” he said.

      • bluesky on 21/06/2020 - 17:42
        +1

        Actually, the above links are more general, this is specific to Early Super Release

        • bluesky on 21/06/2020 - 19:19

          Behaviours that attract our attention include:

          • applying when there is no change to your regular salary and wage, or employment information
          • artificially arranging your affairs to meet the eligibility criteria
          • making false statements or fraudulent attempts to meet the eligibility criteria
          • withdrawing and recontributing super for a tax advantage.

          We are investigating some cases and may consider it appropriate to apply the general anti-avoidance rule for income tax (known as Part IVA) in relation to a COVID-19 early release of super arrangement if you (or a representative) enter into a scheme mainly for the purpose of obtaining a tax benefit.

    • whooah1979 on 21/06/2020 - 18:13
      +1

      People getting fined for using money that they've work hard for. Way to go to keep people down.

    • LFO on 22/06/2020 - 19:05
      +1

      Wonder if this is true or just to deter some people.

      Superannuation Funds are absolutely devastated that money has to be released before time.
      That means less fees and charges to bleed those funds and rape the Super members.
      They will invent and drum up anything to deter releasing those billions.

      • abc on 24/06/2020 - 11:49
        +1

        Super is a fee generating machine for super funds and their fat cat fund managers. If you are able to manage/invest the money yourself without being time locked it is a far better option. The tax advantages IMO are overrated as the rules can (and will) always be changed.

    • abc on 01/07/2020 - 10:22

      ATO is the enemy of the taxpayer and should be treated as such. They are literally evil.

      • LFO on 02/07/2020 - 20:03
        -1

        Taxpayers are ATO's friend. No questions, just paying.

        Taxcheaters, taxavoiders, taxevaders are foe. Always finding a way not to pay.

  • websterp on 01/07/2020 - 10:36
    +1

    I've looked into ATO guidelines in order to check my eligibility this year. In my case I have two jobs, one full time and a second part time doing 10 hours a week. My 10 hour job will drop to 0 starting next month and no guarantee it will ever pick up. In the eligibility page they are only talking about a drop in your hours by 20% and no mention about which job if you have multiple jobs or the percentage drop in income due to your hours being reduced. So would I be eligible for early withdrawal in this case?

    • whooah1979 on 01/07/2020 - 10:47

      Your working hours is reduced by 100%. It's time to take out your money.

      • websterp on 01/07/2020 - 10:50

        But my full time job continues as normal. So that is not exactly the case.

        • whooah1979 on 01/07/2020 - 10:52

          Yes it is. 10 hours a week down to 0 hours is a 100 % reduction.

          • websterp on 01/07/2020 - 10:56

            @whooah1979: Well I just rung ATO. If you are doing multiple jobs you need to find out total weekly hours from all jobs (FT/PT/Casual) and calculate the percentage drop from that figure. But I guess this being ATO if you ask 5 people you'll probably get 5 different clarifications.

            • whooah1979 on 01/07/2020 - 10:58

              @websterp: Your hours is reduced by 20.84% if you want to play ATO game.

              • websterp on 01/07/2020 - 11:05

                @whooah1979: Yeah. I figured that out. Wonder how many lodged their requests this morning, both legit and fake after all the fear-mongering that was all over the media during the last couple of weeks.

                • whooah1979 on 01/07/2020 - 11:14
                  +1

                  @websterp: The ATO should spend less time trying to keep hard working Australians down and go after profit shifting MNC and trust fund high-flyer.

Login or Join to leave a comment
Login Join