Early Super Release (COVID)

Platinumtelecom on 24/06/2020 - 19:21

I am hoping to get some clarity on the early release of super.

I was put down to 10hrs per week for 3 weeks during Covid and requested a super withdrawal as I was matching the requirements.

However, for the second withdrawal, I am back at work full time. But on the ATO website it says

on or after 1 January 2020 either:
you were made redundant
your working hours were reduced by 20% or more (including to zero)
you were a sole trader and your business was suspended or there was a reduction in turnover of 20% or more (partners in a partnership are not eligible unless the partner satisfies any other of the eligibility).

It doesn’t clearly say when and for how long my hours need to be reduced by 20%, it just says after the 1st January. So technically my hours were reduced (for 3 weeks). It doesn’t say if at the time of the application my hours need to be reduced.

Am I eligible for the second withdrawal?

Financial

Comments

  • WreckTangle on 24/06/2020 - 19:55
    +2

    If you need to find a technicality then you're not eligible

  • toniyellow on 24/06/2020 - 20:04

    Even if you are eligible, why lock in what are at the moment paper losses by withdrawing, and why transfer from a low tax to high tax environment?

    • iforgotmysocks on 24/06/2020 - 20:11
      +3

      Because flatscreen.

        • Donaldhump on 24/06/2020 - 21:10

          smsf? been around for a while

        • jimbobaus on 24/06/2020 - 21:33
          +1

          U and Diji1 must be fun at parties

        • crentist on 24/06/2020 - 21:35

          why would the libs be against a system that lets them gut the national pension, inflates asset prices, and has everyone in the country concerned about market performance over anything else?
          not to mention how much of the nations super ends up "managed" by their banker mates

        • iforgotmysocks on 24/06/2020 - 22:09
          -1

          Yep to buy a flatscreen.

    • Platinumtelecom on 24/06/2020 - 20:14

      My money is better invested into property development. I have $120k in super, if I could access it all I would easily use it to turn a $30k profit in 3 months by flipping a property (with a loan of course)

      • Ryanek on 24/06/2020 - 20:42
        -1

        Are you under the impression you can withdraw all your super?

      • gmail92 on 24/06/2020 - 22:48

        and what happens if you lose the 10k gambling on something that's not guaranteed?

        • Platinumtelecom on 24/06/2020 - 22:59

          I have flipped 4 properties, it’s not gambling if you know what you’re doing.

          • [Deactivated] on 25/06/2020 - 07:57
            +3

            @Platinumtelecom: If youve flipped 4 houses you should have plenty of cash

            • Platinumtelecom on 25/06/2020 - 08:03
              +1

              @[Deactivated]: I do have cash and currently building a house with that cash, so an extra $10k Is welcomed at the moment

              • gmail92 on 25/06/2020 - 09:07
                +2

                @Platinumtelecom: So if you have plenty of cash, and some common sense, you would know that this will probably be the most expensive $10k you will ever use and probably not a good idea.

                • bobbified on 25/06/2020 - 13:22
                  +1

                  @gmail92:

                  that this will probably be the most expensive $10k you will ever use and probably not a good idea.

                  Says who? A lot people will have already made a 20%+ gain on the tax already. There's nothing stopping that $10k from going back in smaller increments at a later date.

                  • gmail92 on 25/06/2020 - 14:16
                    -1

                    @bobbified: I can assure you OP has no intentions for that.

                    • bobbified on 25/06/2020 - 14:48

                      @gmail92: As long as he keeps it "productive", it's not necessarily a "waste". (A flat screen tv is not what I'd call "productive use").

                      • gmail92 on 25/06/2020 - 20:59

                        @bobbified: I'm not saying it's a waste; I'm saying the opportunity cost is high and not clear to most.

      • TEER3X on 30/06/2020 - 17:08

        What if the property market crashes while you are flipping that property?

        • Platinumtelecom on 30/06/2020 - 17:10

          I rent the property I live in for that reason, if the property market crashes, I move it to the property I am renovating.

  • mskeggs on 24/06/2020 - 20:14
    +2

    You qualify, as you said. Why question?
    Whether it is a good idea or not is something else entirely.

    • Platinumtelecom on 24/06/2020 - 20:15

      I was just double checking, lots of people have different opinion but I guess I could just call ATO for certainty

  • brendanm on 24/06/2020 - 20:29
    +1

    I called the ato about this, as I had a couple of days paid leave due to covid. They said I was eligible. So you most definitely are.

  • belesci on 24/06/2020 - 21:08

    So what’s going to happen to those who pulled it out if they were not eligible? ‘Asking for a friend…’

    • jimbobaus on 24/06/2020 - 21:34

      If you believe the media you are going to Jail or getting a massive fine
      If you read the actual release from the ATO… they are targeting those who withdrew that should not have and then re-deposited it for a tax break.
      The headlines were: ATO Targets Super Withdrawals to those ineligible (etc etc )

    • Platinumtelecom on 24/06/2020 - 21:41

      From what I read, if it’s a minor breach, they will ask you to declare the withdrawal as part of your assessable tax income, so essentially just taxing you on it. If it’s a major breach, it’s $12,000 fine..

      • belesci on 24/06/2020 - 21:50
        +2

        Thanks guys I’ll tell my mate ;)

  • ode1online on 24/06/2020 - 22:21

    You want OzAccountants.com.au not Ozbargain.com.au

  • Ash-Say on 25/06/2020 - 05:28

    I received following advice from ATO so might help few people:

    To apply for early access to your super due to being affected by COVID-19, you need to meet at least one condition https://www.ato.gov.au/Individuals/Super/In-detail/Withdrawi…

    If you were a sole trader, and your business was suspended or there was a reduction in turnover of 20% or more, you would be eligible as this condition relates specifically to your business.

    If your working hours have been reduced by at least 20% or more (including to zero), you can also apply to access your super early. This may be due to being forced to take leave. Therefore, to work out if you meet this condition, you may include the forced leave hours in your calculations for 20% reduction in your total hours.

    • bobbified on 25/06/2020 - 13:31

      It's the same for everyone. It's just not very clear and OP is seeking clarification.

  • [Deactivated] on 25/06/2020 - 06:56
    +1

    Just do it

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