'Rona Super Cashout Auto Investment Competition

[Sprintey]

During the Coronavirus pandemic, the government has allowed people to cash out an amount of superannuation, ostensibly to help with living costs if salary is impacted.

Instead, people seem to have gone on a rampage of buying toys and camping equipment. As a result, we can see this in the market and prices of desirable Aussie cars are up across the board at the lower end.

A theoretical exercise, a Gentleman's competition:

Pick which car will appreciate the best, that can be bought within the price range now. A rough timeframe to see who does best is period of 2 years after the Rona year 2020. You don't have to buy it for real - nope, kudos goes to who has the best sense of what will appreciate. There are two categories for this mind-exercise:

1) I cashed out 10K two years in a row, so my budget is 20K
2) I only cashed out one year, so my budget is 10K

Establish the market price now, and see where it goes. For example, with ED XR6's going quickly at 8K, I'm kicking myself I didn't pick up a good one in the last couple of years at 5K.

Good luck!

https://www.youtube.com/watch?v=wTP2RUD_cL0

[fordomatic]

Too late to establish a market price now, the prices have gone crazy in the last 3 months.

[Polyal]

Originally Posted by fordomatic

Too late to establish a market price now, the prices have gone crazy in the last 3 months.

Yeap, can we play this game in December?

Ive almost (almost) thought to put my ZF out there at a silly price to see who bites.

[Polyal]

https://www.justcars.com.au/cars-for...dan/JCW5165972

LOL

[Bossxr8]

The people who cashed out their super and didn't need it are going to get a severe rogering by the ATO. The ATO is double checking anyone who took out super, vs their one touch payroll amounts. They know who is still getting a full pay.

Get that lube ready.

[cheap]

I wonder if it ever occurred to people why the ATO was so heavily involved in managing JobKeeper, JobSeeker, and Early Release of Super and not the usual boffins at Centrelink?

[Dr Terry]

Originally Posted by cheap

I wonder if it ever occurred to people why the ATO was so heavily involved in managing JobKeeper, JobSeeker, and Early Release of Super and not the usual boffins at Centrelink?

Is it because most of those at Centrelink can't count past 10 without taking off their shoes & socks.

Dr Terry

[Smoke Pursuit]

Its funny you mention this. I know of 2 people who have gone out and cashed super in and bought toys.



Typical of the live for today generation, lets not worry about tomorrow.

[nstg8a]

Originally Posted by Bossxr8

The people who cashed out their super and didn't need it are going to get a severe rogering by the ATO. The ATO is double checking anyone who took out super, vs their one touch payroll amounts. They know who is still getting a full pay.

Get that lube ready.

The eligibility was so vague pretty much the only ones that weren’t eligible were people still earning exactly the same as they were pre corona. Which wasn’t many in the grand scheme of things.

ATO threats are just that, threats.

End of the day the ones that withdrew are only affecting their own futures, no one else.

[FoxtrotGolfXray 5.0]

Originally Posted by nstg8a

End of the day the ones that withdrew are only affecting their own futures, no one else.

Assuming that they don't become a burden on the welfare system, in which case every tax payer is impacted by their shortsightedness.

[nstg8a]

Originally Posted by FoxtrotGolfXray 5.0

Assuming that they don't become a burden on the welfare system, in which case every tax payer is impacted by their shortsightedness.

Which would make zero actual difference to any tax payer...

According to one of the articles on tv after the first round of withdrawals many of those withdrawing are either complexly clearing out their super, or close to it.
So depending on age, they were either never going to have enough to retire on anyway, or they have plenty of time to make it up....

[fordomatic]

Originally Posted by Polyal

https://www.justcars.com.au/cars-for...dan/JCW5165972

LOL

I'm confident this sold in Canberra last year for around 12-13k, it was advertised at 13k. None of the options are factory and although I am different to most owners it was far from "immaculate", hence why I didn't buy it. I kind of wanted to for that "factory manual" as mine isn't factory, then i realised I was being really stupid as mine is a great daily

[Sprintey]

Interesting replies, yes, the horse has bolted.

Will prices fall back to earth once the super cashouts end? Sanity would tend to suggest that yes, they will.

[fordomatic]

Originally Posted by Sprintey

Interesting replies, yes, the horse has bolted.

Will prices fall back to earth once the super cashouts end? Sanity would tend to suggest that yes, they will.

I think they will, but i was also the one in March saying a heap of bargains were about to come up.

[Bossxr8]

Originally Posted by nstg8a

The eligibility was so vague pretty much the only ones that weren’t eligible were people still earning exactly the same as they were pre corona. Which wasn’t many in the grand scheme of things.

ATO threats are just that, threats.

End of the day the ones that withdrew are only affecting their own futures, no one else.

Seems pretty real to me.

https://www.businessinsider.com.au/e...ble-ato-2020-6

Australians who withdrew super early without having lost work are under investigation ⁠— and might be facing a hefty tax bill

JACK DERWIN



JUN 22, 2020, 11:29 AM


Australians who inappropriately cashed out their super could face a big tax bill.
The ATO will commence investigations into Australians who withdrew 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, netting the ATO up to 30% of the dollar figure, and penalties up to $12,000.
The move comes after Business Insider Australia revealed applications had been greenlit by the ATO and super funds despite individuals not meeting the scheme’s own criteria.

[Sprintey]

Originally Posted by fordomatic

I think they will, but i was also the one in March saying a heap of bargains were about to come up.

The one thing that's continued to surprise me until I just accept it watching financial markets for many years now is just how long the insanities in pricing can last.


(coughteslacough)

[Polyal]

Originally Posted by Bossxr8

Seems pretty real to me.

https://www.businessinsider.com.au/e...ble-ato-2020-6

Australians who withdrew super early without having lost work are under investigation ⁠— and might be facing a hefty tax bill

JACK DERWIN



JUN 22, 2020, 11:29 AM


Australians who inappropriately cashed out their super could face a big tax bill.
The ATO will commence investigations into Australians who withdrew 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, netting the ATO up to 30% of the dollar figure, and penalties up to $12,000.
The move comes after Business Insider Australia revealed applications had been greenlit by the ATO and super funds despite individuals not meeting the scheme’s own criteria.

10 Points to the ATO

[roKWiz]

I can not believe a good rust free XF panel van last year were $1300 - $3 000 (with rego) now if you can find one they are $10 000 plus in very average condition.

[Bossxr8]

Originally Posted by Polyal

10 Points to the ATO

Got to get the budget back in the black somehow. Solid troll job by the ATO

[cheap]

Originally Posted by Bossxr8

Got to get the budget back in the black somehow. Solid troll job by the ATO

I wonder if the ATO’s management of JobKeeper/Seeker and Early Super might also snare some of the black market cash-in-hand businesses... hmm 🤔

[ford71V8]

Originally Posted by roKWiz

I can not believe a good rust free XF panel van last year were $1300 - $3 000 (with rego) now if you can find one they are $10 000 plus in very average condition.

I know, just as we started looking for one the prices jumped up

[Adamz Ghia]

Someone aged 30 who withdraws $20k is robbing themselves out of around $150k come retirement, assuming the markets run to historical trends. I gave withdrawing some serious thought but in the end I wasn’t affected and even if I was the fun I’d have with it now just wasn’t worth it.

I doubt the government cares if people **** it up the wall, in the end it’s cash flowing through the economy that otherwise wouldn’t have been.

[nstg8a]

Originally Posted by Bossxr8

The move comes after Business Insider Australia revealed applications had been greenlit by the ATO and super funds despite individuals not meeting the scheme’s own criteria.

Because the ato did zero checks. As long as you ticked the right boxes they approved it. You effectively signed a stat dec saying you met the eligibility criteria.

At the end off the day, the ato will most likely only prosecute if someone is already in their targets.

They don’t have the staff to go double checking the 5 million or whatever it was that withdrew.

[Bossxr8]

Originally Posted by nstg8a

Because the ato did zero checks. As long as you ticked the right boxes they approved it. You effectively signed a stat dec saying you met the eligibility criteria.

At the end off the day, the ato will most likely only prosecute if someone is already in their targets.

They don’t have the staff to go double checking the 5 million or whatever it was that withdrew.

Did you miss the part where they said they are now reviewing the people who made claims against the payroll records? Would be a simple job for them.

If it brings them extra tax back into the system, then yes they will do it. Can't let that money go free now.

[Poetic Justice]

Originally Posted by Bossxr8

Did you miss the part where they said they are now reviewing the people who made claims against the payroll records? Would be a simple job for them.

If it brings them extra tax back into the system, then yes they will do it. Can't let that money go free now.

Reading FAQs on the ATO website about it and the scenarios they play out, you'd have to have blatantly done it and also subsequently ignored a direct warning about it to be penalised $12k.

https://www.ato.gov.au/Individuals/S...nd-compliance/

[Bossxr8]

Originally Posted by Poetic Justice

Reading FAQs on the ATO website about it and the scenarios they play out, you'd have to have blatantly done it and also subsequently ignored a direct warning about it to be penalised $12k.

https://www.ato.gov.au/Individuals/S...nd-compliance/

Wouldn't put it past some people.

[nstg8a]

Originally Posted by Bossxr8

Did you miss the part where they said they are now reviewing the people who made claims against the payroll records? Would be a simple job for them.

If it brings them extra tax back into the system, then yes they will do it. Can't let that money go free now.

Nope. Did you miss the part where I said the eligibility is so vague that almost anyone in these times is eligible?
Pretty much unless your income or hours have stayed the exact same since pre Covid you could claim.
Ato don’t have the staff to chase everyone. My missus works for the ato, they’re already cutting hours from the tax rush...


Sent from my iPhone using Tapatalk

[Franco Cozzo]

Super is a joke - you pay tax on it going in then depending on your age you pay tax on it coming out too.

Are people forgetting here that it's actually your money?

I'd rather take the 9.5% in wages and then make sure I look after myself.

The joke here is the government who tricked people into their self funded 'stimulus package' that the government got a slice of going in, now they're going to get a huge chunk of it going out too on people who 'fraudulently' capitalised on the opportunity to withdraw THEIR OWN MONEY.

What a time to be alive

[xisled]

I would have got 20k out.

I would be looking for a FPV BA GT around the 20k mark.

[Citroënbender]

I’m predicting a forum crash just before the 24 month anniversary of this thread. Then we’ll all be crying into our face masks as there’ll be no clarity on the best pick.

Do the rules exclude improvement whether DIY or separately funded?