What impact will 600,000+ people withdrawing super have on the markets?

Discussion in 'Sharemarket News & Market Analysis' started by Ozbargain, 10th Apr, 2020.

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  1. Froxy

    Froxy Well-Known Member

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    The ATO are not going to be checking this. The government wants the money out in the short term to stimulate the economy.

    The last thing they will be doing in a recession is chasing people to pay back super.
     
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  2. ACMH16

    ACMH16 Well-Known Member

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    And five years down the track? What's the maximum timeframe for the ATO coming after you again?

    Oh, that's right. For fraud there is no time limit.
     
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  3. Froxy

    Froxy Well-Known Member

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    I've got no interest in doing it but there's no way they are going to chase a couple of hundred thousand people in 5 years time.
     
  4. Empire

    Empire Well-Known Member

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    Going by this forum, which I guess is going to be naturally property interested, it seems the effects are
    1 - massive withdraws from super / share market. I'll stick with cash in my super until this has passed.
    2 - people hoarding cash and paying off property. This is somewhat bullish for property imo (not that I see property rising, but it will soften the blow). And will juice banks reserves.

    I think this is a good move as this is stimulating the general public, while crunching the stock market (which is where the rich folk hang out apparently :D).
     
  5. Barny

    Barny Well-Known Member

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    If this many people take out super then I'm betting the current access age of 60 years old will be lifted to 65-70 for sure. Best take it out and invest it wisely if you have years ahead of you and legal to do so.
     
  6. Zenith Chaos

    Zenith Chaos Well-Known Member

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    This is almost the worst possible time to withdraw from Super, not surprising the government has allowed it.
     
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  7. SatayKing

    SatayKing Well-Known Member

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    Possibly a cunning plan to reduce the level of funds in a concessionally taxed environment and hopefully increase those in the not so generous tax environment.

    We have ways of making you spend.
     
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  8. Barny

    Barny Well-Known Member

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    Unless you believe the markets have further to fall, and don't use it wisely.
     
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  9. SatayKing

    SatayKing Well-Known Member

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    Interesting issue. So unless used wisely it could mean a person who, for whatever reason, withdrew $20k in the next few months has factored in and is OK with forgoing a possible $175k (30 years @ 7.5%) before taxes and inflation.

    Pick a number. Any number.
     
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  10. Barny

    Barny Well-Known Member

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    Lol I’m sure most have not factored anything in but simply surviving
     
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  11. itsmescottyc

    itsmescottyc Well-Known Member

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    Can a stay at home mum (unemployed?) therefore access 20k legally, or are you specifically required to have lost your job due to coronavirus?
     
  12. Barny

    Barny Well-Known Member

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    Early access to your super
     
  13. Frosty123

    Frosty123 Well-Known Member

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    Back to the original post. What impact do some of you think this will have on the share market?
    Will the ASX slide down hard when funds are drawn out?
     
  14. Codie

    Codie Well-Known Member

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    Personally I'm taking it out to put it back into the mortgage, re borrowing it and buying VAS, 37yrs until id be able to access it in super id sooner be in control of it now and use it to debt recycle and accumulate more whilst things are cheap.
     
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  15. wilso8948

    wilso8948 Well-Known Member

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    Any issues qualifying @Codie? I seem to remember you being stood down?
     
  16. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    The beauty with debt recycling is that there is no need to qualify
     
  17. wilso8948

    wilso8948 Well-Known Member

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    Can you elaborate? I was referring to qualifying for the release? ie. Covid affected. Understand that he has debt recycled to purchase VAS.

    Is this because there is technically no "tax avoidance" because it isn't being salary sacrificed back?
     
  18. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Oh sorry I thought you meant the loan. pls disregard.
     
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  19. Cia

    Cia Well-Known Member

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    Or what if you technically are eligible but have personal adequate funds, but wish to withdraw it because as a landlord we don't know yet, if any of our tenants might bail? So it's a safeguard in that event.

    And if you put it in your offset that is the same as having it in your super but it's just accessible anyhow.
     
  20. Angel

    Angel Well-Known Member

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    I discovered last week that if I get stood down, they have to keep me on full pay.

    Bugger

    I wont qualify to withdraw it.
     
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