Big problem looms for 40% of Aussies who accessed super early   



Newds.com.au
AUGUST 19, 2020

New research has revealed 40 per cent of Australians who withdrew superannuation from July 1 were potentially ineligible, leaving themselves exposed to an expensive ATO fine.

Under the Super Early Release Scheme, which was introduced to help Aussies through the coronavirus crisis, eligible Australians were able to take $10,000 from their super last financial year and a further $10,000 this financial year.

But to meet the criteria, a citizen or permanent resident of Australia and New Zealand must need the cash as a direct result of the economic impact of COVID-19, and must be either unemployed, receiving government benefits such as JobSeeker, have been made redundant as of January 1 or had their work hours cut by at least 20 per cent.

Sole traders are also eligible if their business was suspended or had a drop in turnover of 20 per cent or more.

However, applicants do not have to attach evidence to support their claim, with the Australian Taxation Office simply advising “you should keep records and documents to confirm your eligibility as we may ask you for this information”.

Now, analytics company AlphaBeta and credit bureau illion have crunched the numbers and found 40 per cent of Australians who made a second withdrawal from July 1 didn’t lose any income during the coronavirus pandemic.   



Prime Minister Scott Morrison previously said he didn’t want to ‘give lectures’ to Aussies when it came to their super.




The analysis found those people had spent an extra $3618 on average in the fortnight after receiving the cash compared with their normal spending habits.


And 64 per cent was spent on non-essential items such as alcohol and clothing.

The research also revealed an average of $219 was spent on alcohol and tobacco in the fortnight after the second superannuation withdrawal, compared with $157 the first time around. Clothing and department store spending was also up from $296 to $317, as was spending in restaurants and cafes at $287, up from $207.

However, the tax office has since revealed a superannuation rort crackdown, with the rollout of a preliminary examination of eligibility for claims.

It has also confirmed that those found breaking the rules could face separate financial penalties of up to $12,600 on each respective claim.

It means double-dipping account holders who lied about financial stress induced by COVID-19 could be fined a maximum penalty of $25,200, if the ATO deems the applications to be false and misleading.

ATO assistant commissioner Sonia Corsini previously told news.com.au while the “vast majority” of those who had withdrawn super were “honest and doing the right thing”, the tax office would take action when people “deliberately exploit the system”.

i got mine out and went and bought some gold and silver like they should have done years ago instead of holding worthless paper and promissory notes used to gamble on the national share-market casino for big losses At least I can say that I now have a balanced portfolio with some capital growth that survives share market crashes and corrections and I don't have the thieves stealing their fees from it like they do for the rest of the punters

Who the f.cken hell do these super fund scammers think they are preaching to everyone not to take out their super when they literally steal the equivalent amount in fees each year !! Fricken arrogant pieces of sh,t !! Why isn't the ATO looking into that instead of chasing the battlers ??

Bobby. wrote on Aug 30^th, 2020 at 3:51pm:


Something very wrong with the whole setup and the way the pollies pensions are guaranteed by the tax payer of Australia instead of being thrown at the national sharemarket casino like the rest of us have to endure

It won't work. It's a 'default' claim by the ATO to use this action to 'cash in' more than people withdrew. They didn't provide this information up front before allowing the Super Releases. Thus, it can be used as 'misleading' the Public and the Public can plead innocent to not being cautioned.

If they release a 3rd $10,000 super next year - then people are then 'cautioned' and can be instantly fined.

Poor diddums.

Im living off my super now

SO THE GRUBBERMENT CAN STUFF THEIR FINES RIGHT UP THEIR USELESS KYBERS

Jasin wrote on Aug 30^th, 2020 at 7:08pm:



Wait until they try on the old 'ignorance of the law is not an excuse' - well, sonny (ATO) this is not Law - it's your imposing a 'regulation', and you can stick it.

We desperately need a revolution in this nation, or at the very least a new party that works for the people first and isn't just another fat and easy career path for a bunch of old school mates.

Sir Grappler Truth Teller OAM wrote on Aug 31^st, 2020 at 8:24am:


Not a higher burden if all the old ppl die

Spot