Legal Tip 296: Legislation Governing the $10,000 early Release of Super

Grammatical question really.
I don't think Part IVA could be used on this either

 

Many people also overlook the extended version of the rules which dont include tests other than the need to live !!

1(B) allows release for those with some student and some other visas. They merely can access the $$$ to assist with immediate living expenses.

 

Not to the release. I see no limit to a contribution deduction at D15 in a return especially where a earlier determination may have been a element to a scheme to obtain a tax benefit. ATO has cautioned they will look to apply this.

I do question what "usual hours" means. The EM uses examples with "average hours" which isnt quite the same as usual hours either I suspect the ATO will be broad in that interpretation but less tolerant to blatant applications for release. There seems anecdotal indications many people even in Govt, bank and other stable jobs who had zero impact on personal income applied. And a quite number of them who have indicated on ozbargain.com.au and other places they also claimed a deduction after recontribution quite promptly.

The ATO wont want to be the agency that allows $3K+ increased tax refunds paid by such acts. A mass marketed scheme bound to have questions asked.

 

The extrinsic material can only be used where the wording is unclear. Here it seems pretty clear to me.

 

ATO have issued some further media clarity today
https://www.smh.com.au/money/super-...-hardship-super-payments-20200702-p558e4.html

They arent backing down. Given the threats I was sent by the TPB and professional bodies concern these issues I would think they will take it seriously. I was threatened with being struckoff, penalised, dealt with under promoter penalties and criminal charges. Like all tax professionals. I'm happy to advise to those who meet conditions but its not my role to bend them to fit.

Three people so far have approached me to help unwind their issues (apparently admitting to concerns). One was valid. Other two I referred to lawyers since an admission to the ATO could itself be a trigger for penalties and a voluntary disclosure may be a legal concern if made by a tax agent. The Commissioner has no scope to disregard breach of laws. And I cant recommend someone self incriminate. They need legal representation.

 

That article contains some inaccuracies.

I don't know what the big fuss is about but they are trying to scare those ineligible from withdrawing. If you are eligible you have nothing to worry about.