I got super released for dental work and found someone cheaper. I asked the super fund how to return the excess and they said I can't. After losing my job, I used it as the only income for 4 months as I didn't qualify for Centrelink. Someone has said the ATO will fine me as a penalty. Is this correct?
Hey @Anon63
You've done the right thing trying to get through to our Super team for clarification.
If you met all the requirements when you requested the release, had the right supporting info, and your intentions were legitimate - it sounds like you did everything right.
Our team that deals with compassionate release is the best place to start to work out what your next steps should be.
If you have used a portion of those early release funds for another purpose other than what they were intended for then you may be penalised, as it could be seen as an illegal access of super.
Early Access to super because you are not employed falls under a totally seperate criteria which by the sounds of it you would not have been eligible for and you would have to have applied through Centrelink for it be considered and not the ATO.
You really should have done your research before you applied, and in any case you would have signed a declaration stating that you were going to use the funds for a specific expense and amount. Therefor, you should not have any excess funds left to do what you please with.
The consequences of illegally accessing super are HERE
If I was you I would a voluntary disclosure to the ATO in order to try and reduce the amount of penalties that they may apply. Its always best to get in first
I did my research, including what you provided prior to the changes, and then got told differently by another party which is why I’m asking again. I have also tried contacting the ATO directly before using this forum and was unsuccessful.Thanks for your response.
Talking to ATO staff on the phone line is not the best place to start when trying to clarify something like this.
There is an alternative to making a voluntary disclure which I believe is the better option if you want to reduce or totally avoid penalties.
You can lodge a complaint and through that process which can be slow an ATO officer with appropriate skill sets and knowledge should eventually contact you to try and sort it out. To lodge a complaint just follow the process in this LINK.
Yeh same thing happened to me, I didn’t transfer the funds to the clinic and I was given the wrong amount by my super company, however in the meantime I lost my job and was moving house so I used all the funds on the living expenses etc. I am not worried about what’s going to happen and want to get in first to do the right thing, will I go to jail or court for using the funds or will it just be penalties?
Hey @ashlee66
I dont know what's going to happen to you, as Im sure each scenario gets assessed differently.
But i did do a quick google search on 'what happens if you use your early released super other than the intended use?' and this link appeared - Illegal early access to super | Australian Taxation Office - probably a good idea to reach out to the super team sooner rather than later.
@ashlee66 what happened with this? Im now in the same position
Hey @Anon63
You've done the right thing trying to get through to our Super team for clarification.
If you met all the requirements when you requested the release, had the right supporting info, and your intentions were legitimate - it sounds like you did everything right.
Our team that deals with compassionate release is the best place to start to work out what your next steps should be.
What ended up happening with this? Did you get penalised? The exact same thing happened with me.
@Anon63 I want to do the same thing what paperwork will I need to access my super for dentals
Hi @Ballrunner27,
It sounds like you're wanting to access your super early based on compassionate grounds.
There is specific evidence that must be provided, including:
I'd recommend reading through the link, and if you're unsure how to access certain evidence required, you can phone our super team and discuss your options.
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