There seem to be quite a few naughty people out there that have accessed their COVID Super falsely. 

Those that have lied about their financial situation in order to access their super early are in the gun sights of the ATO. 

And… the potential damage to the naughty ones?..... an up to $12,600 penalty on each of the $10,000 superannuation drawdowns.  On top of that, the amounts paid under the early release scheme will become income that needs to be included in your Income Tax Return and taxed accordingly.  That could be quite a nasty and significant surprise instead of the usual refund cheque.  Comments of “well it’s my money”, just won’t cut it with ATO enforcement action.

The current financial assistant measure allows superannuation account holders to request up to $10,000 for both the 2020 and 2021 financial years.  Taxpayers need to understand that the release of those funds is not an automatic green light as to ATO approval.  The test will be your individual circumstances supported by the documentation and declaration you sent to your super fund.

The ATO has set up a hit squad to enforce any breaches of Corona support measures, including JobKeeper and superannuation.

The early withdrawal super schemes hardship requirements are well defined and early indications are that up to 40% of withdrawals do not meet that criteria.

Original government forecasts that green-lighted the scheme has had withdrawals exceeding those estimates by $15 billion dollars.

Taxpayers should also consider the impact of available retirement funds at the time of retirement, from accessing the $20,000 now.  Depending on your current age and years to retirement you could find that your little nest egg is short some $45,000 as a result of your COVID withdrawal. 

But hey, times are tough, they will get tougher, and if you need to money now and your circumstances are genuine, then go for it.