ATO alone wholly responsible for identifying super early release applicants

The Federal Government has confirmed that the Australian Taxation Office will be wholly responsible for identifying and verifying hardship early release superannuation candidates, with no involvement on the part of AUSTRAC.

The confirmation has been delivered by the Assistant Minister for Superannuation, Financial Services and Financial Technology, Senator Jane Hume who has outlined an early release procedure in which the ATO will be the ultimate arbiter.

She said that AUSTRAC had confirmed that superannuation funds could rely on the ATO’s customer verification and that members would not even need to contact their superannuation funds at any time in the process.

Addressing a conference, Hume said that as far as administration goes, it will be as simple as possible, using existing mechanisms:

  • Applications are to the ATO via MyGov website;
  • The ATO will verify the applicant, assess the application, record the bank account details, and make a decision;
  • The ATO will then direct the nominated fund to release the requested amount to the bank account specified by the member;
  • AUSTRAC has confirmed that superfunds can rely on the ATO’s customer verification; and
  • The member does not need to contact the super fund AT ALL in the process.



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This is fine if the member's account has $10,000 in the cash account. If not, and the drawdown is there is no choice but a proportional across the investments, then no need for advice. But what happens when the superfund member contacts their adviser and asks for advice on which funds/securities to sell down (in a down market) to free up cash to then make a withdrawal. It would be a really bad look for an adviser to charge their client to provide them with advice but unless advisers do this pro bono, what's the solution? Consider that the people wanting access to their super have recently lost their job or been reduced to 80% or less of their hours and are doing this to save their house or afford food and bills while we get through the CV madness.

Lawyers have no issues charging people to :

1. sort out a deceased estate, in some of the examples advisers have given on this forum, including simple advice to withdraw money from a bank account for an astronomical fee of $12,000

2. when clients are going through a divorce, lengthening the process as to deliberately drive up their billable hours

3. taking up to 35% of insurance settlements from insurance proceeds in super where their client may never work again. this is unconscionable conduct as the clients are unsophisticated and do not know their options

4. class actions funded by litigation funders to hold large company "to account" where the only winner is the lawyer

so, the legal fraternity's rampant and unchecked greed gets unchallenged giving them a "professional status" with a lowly 24 unit bachelor's degree in most instances and only 10 hours of CPD per annum.

while, we have been battered by the media, the government, and all and sundry, and after all that you have grown a conscience and feel bad for the very same people who have scapegoated us and you want to help them for free? because senator hume is exhorting you to do so

I think you need to retrain as a nurse and get in the front line of COVID 19.

if we had been treated with a bit more respect, I would have been more obliging helping clients for free. with a master's degree in financial planning and postgraduate qualifications in tax, and accounting and business, I am the most qualified of all professionals to provide timely and effective advice to clients to give them relief at their time of need.

But, why should I?

Having ATO handle withdrawal requests prevents the union funds from their usual "delay and frustrate" shenanigans. Smart move from Hume. As an ex union fund employee she's wise to their tricks.

Why should the ATO make a decision to pay an individual part of his/ her super ? When it doesn’t technically belong to them. After verification it should speak for itself, not more red tape.Just asking on behalf of ordinary citizens.

It's my money not the Australian Tax office. But they're told what to do by the government, they're the ones who want to have total control over our money and lives,IT IS SO WRONG. My son has lost $65000 of his superannuation. I now hate all politicians.

I know it's very hard time in the whole world right now, affecting my job as a part-time, I'm only working three days a week four and half hours a day, and I don't know how long,

I am still working but before Corona virus I was able to pay my loan and food and pay rent. Now the food and the cost to protect virus are so expensive and I have to ask the person who is my flatmate to leave, I am old and had low immune system. I was under stress and my cough has not been better in the last 2 months. I will be suffer if let the tax office approve for me to take out my super.
Joanna

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