In April, the Federal Government introduced a temporary early access to superannuation scheme to help people who had lost their jobs and faced financial hardship due to Covid-19.

The scheme allows Australian and New Zealand citizens and permanent residents to release up to $20,000 from their super, tax free. The first $10,000 became available from mid-April and runs till 1 July 2020, and the second withdrawal of $10,000 can be made after 1 July until 24 September 2020.

To date, as reported in The Business Insider this week, more than $15 billion has been withdrawn from super accounts! The ATO has suspected there is an issue with the scheme – with money being released when it shouldn’t have through false applications.

The ATO will now begin investigations into people who have withdrawn up to $10,000 of their superannuation despite being ineligible for the scheme. Those caught will have the withdrawal amount added to their taxable income and could face penalties up to $12,000.

Applications are made directly to the ATO through your MyGov account and in some cases have been approved within 24 hours. There are strict eligibility criteria guidelines to meet, however, it seems the ATO has approved applications despite individuals not meeting the requirements.

Unfortunately, scammers have also targeted super accounts, and in some cases have been successful in claiming the $10,000 early release funds by creating false applications and identity theft.

The ATO will send you a notification if there are any changes made to your accounts such as a ‘de-linking’ of your MyGov account from the ATO, which should be a red flag. You would also receive notifications from your superannuation if any application has been made, however, if the scammers have already made it into your accounts, they will change your contact details, so you don’t receive notifications. Therefore, it is wise to check your statements regularly and if you have any suspicions, contact your superannuation fund or the ATO straight away.

If you have any questions about this, please email them through to Chloe admin@taxproaustralia.com.au and one of our Taxpro accountants will be in touch.