Is it a good idea to take out the 10k super and put it towards property?

I don't think they will care.

The government set up this scheme, not only for financial hardship, but as a stimulus measure to get more cash moving in the economy. You are accessing your own money, not the Governments, so I don't think they will be cracking down on eligibility in this instance. The number of Australians who have made the withdrawal is too vast, for the ATO to want to commit resources into confirming eligibility and issuing penalties IMO. They have bigger fish to fry.

What they have flagged cracking down on, is people making the withdrawal, and then re-contributing the money back into super as a tax-deductible contribution.

 

I dont beleive the ATO would just disregard this. Its a easy process for them to datamatch and issue please explain letters that give taxpayers a period of time to prove they complied. Then cancel determinations and amend to make the $10K assessable. They could also add a $4440 penalty for a false declaration (20 penalty units). Pretty easy to identify those that are genuine and those that are not (eg single touch payroll data etc)

 

Governments losing out because that was money that otherwise would have been taxed at the tax payers marginal rate instead of super rate.

 

Correct me if I'm having a blonde moment, but you've already paid at least 15% tax on the amount that you withdraw, so re-contributing it wouldn't really be a deduction would it?

 

Good point, but since it is already in there and taking it out tax free someone on a personal tax rate of more than 15% could still be saving more
Someone on 47% would save $4700 in tax by an extra $10k deduction but the $10k would be taxed at $1500 going in.