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Honest mistake - early release application

Newbie

Views 3509

Replies 7

I was recently told my hours would be cut 20-30% in response to the downturn from the crisis. I panicked and submitted an application to withdraw super, and two days later, I was told that I would no longer be working reduced hours as there is an uptick in demand for my line of business (IT—half the country works from home now and needs my support!).

These are extremely uncertain times, and admittedly, I could’ve spent more time digesting the wording of the eligibility criteria, but I was genuinely frightened that I wouldn’t be able to meet financial obligations.

Now I’m an absolute mess stressing about what kind of penalties I could face. What would those penalties be? Is there any way I can make amends for this kind of mistake? I’m terrified. Smiley Sad
1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Community Moderator

Replies 3

Hi @CJ01

 

Thanks for reaching out to us.

 

@MCA_Accountants is correct. If it was an honest mistake then you should be fine. You will need to phone us as soon as possible so we can sort it out. You will also need to contact your super fund (or funds if you requested a release from more than one account) and ask them to stop the payment release.

 

We look forward to your phone call.

 

Thanks, ChrisR

7 REPLIES 7

Devotee

Replies 0

Hi CJ01

 

These are indeed extremely uncertain times. I've liked your post because I'm empathetic with your position, not because I like the position that you're in! I'll leave a response to the ATO Community and/or the accountants and tax lawyers generously giving of their time for free on this forum. 

 

 

Devotee

Replies 1

In general the ATO are an understanding bunch. If you are honest with them, they give you the benefit of the doubt. You panicked, but you had been told your hours would be cut by 20% - one of the criteria for being able to access your super.

 

The rules don't say how long your hours must have been cut for, so if your employer can provide you with a letter stating that he did tell you that, I imagine you would be OK

Initiate

Replies 0

what if you can't get a letter and it was verbal?

Most helpful response

Community Moderator

Replies 3

Hi @CJ01

 

Thanks for reaching out to us.

 

@MCA_Accountants is correct. If it was an honest mistake then you should be fine. You will need to phone us as soon as possible so we can sort it out. You will also need to contact your super fund (or funds if you requested a release from more than one account) and ask them to stop the payment release.

 

We look forward to your phone call.

 

Thanks, ChrisR

Newbie

Replies 2

What happens if you can't pay it back to the super fund and already spent it on debt? I was told of a potential of being redundancy/ reduction in pay. In my absolute panic, I applied and got it paid, paid debt in preparation - it all happened so quickly. In the end I was able to keep my job which I'm super happy about! Now all in all, I wasn't eligble and never will be really. I didn't mean too do the wrong thing by all means. I did ring the ATO, they told me to contact the super company to make an arrangement to put it back which I can't doI jumped the gun in such crazy, scary uncertain times. I'm extremely worried, and stressed and it's keeping me up at night the future outcomes. 

ATO Community Support

Replies 0

HI @RainDays,

 

Thank you for reaching out to us. If you have accessed your Super by mistake you can contact us for further assistance. It may depend on your circumstances as to what the outcome will be. On this forum we provide general information and are not in a position to make that decision. As Chris2 also advised you can phone us to assist you.  

 

Hope this helps.

 

Regards,

 

Jodie2.

Newbie

Replies 0

Hello, I feel sorry for you! Hopefully it is working for you.

I am in a similar position but i have the funds. I am not sure where to go as ATO said they cannot do anything and speak with the super fund.

 

I am not sure where to really go with this as it looks like no one really knows how to handle it (which is understandable, since new). I am trying to do what is right (for me acting too fast), and i have a huge fear i will be penalised for it.