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_tomksport(Newbie)Newbie
12 May 2021

Hello,

Back in March 2020 I was in the process of making an application to withdraw $10,000 from my Super on Financial Hardship grounds and saw via media channels the Goverments announcement to access Tax Free $10,000 from your Super if you met the criteria.

I followed all your early instructions that I think was to inform the Tax Office I would be applying then on the 26 March 2020 I applied to my Superfund form the funds.

I was granted the funds and recived a payment but noticed the tax component was deducted.

My question is that can I apply for a refund of the tax component deducted because of the mistake I made thinking I was doing the right thing but reality was I jumped the gun.

Regard Tomksport

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2,106 views
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Most helpful reply

RachATO(Community Support)Community Support
13 May 2021

Hi @tomksport,

I believe you're referring to the COVID-19 early release of super scheme as the other super withdrawal option that became available around March 2020.

Both options had a different application process, and the applications were made through a different entity depending which release option was being pursued.

The COVID-19 super release was tax-free, and applications needed to be made through an individual's ATO link on myGov.

The severe financial hardship release is applied directly through the super fund, and this is generally taxed as a super lump sum payment.

Unfortunately, if you had completed an application for one option and the amount has been released under that option, the outcome and any associated tax obligations can't be altered. As I mentioned just above, hardship applications are processed directly through the superfund, and they withhold a taxable component of the payment as part of the condition of releasing the payment. Even if your intention was to apply for the COVID-19 release, because a hardship super request had been submitted and released to you, a refund of the taxed component is not able to be processed as they are two separate release conditions.

Hopefully this all makes sense, and unfortunately we aren't able to alter the outcome in this situation.

COVID-19 Early release of super

Severe Financial Hardship early release of super

RachATO

All replies

Most helpful reply

RachATO(Community Support)Community Support
13 May 2021

Hi @tomksport,

I believe you're referring to the COVID-19 early release of super scheme as the other super withdrawal option that became available around March 2020.

Both options had a different application process, and the applications were made through a different entity depending which release option was being pursued.

The COVID-19 super release was tax-free, and applications needed to be made through an individual's ATO link on myGov.

The severe financial hardship release is applied directly through the super fund, and this is generally taxed as a super lump sum payment.

Unfortunately, if you had completed an application for one option and the amount has been released under that option, the outcome and any associated tax obligations can't be altered. As I mentioned just above, hardship applications are processed directly through the superfund, and they withhold a taxable component of the payment as part of the condition of releasing the payment. Even if your intention was to apply for the COVID-19 release, because a hardship super request had been submitted and released to you, a refund of the taxed component is not able to be processed as they are two separate release conditions.

Hopefully this all makes sense, and unfortunately we aren't able to alter the outcome in this situation.

COVID-19 Early release of super

Severe Financial Hardship early release of super

RachATO

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Financial Hardship Superannuation early release claim | ATO Community