I received a redundancy in May 2013, we had no other income except the small amount my wife earnt (around $20,000).
Sixteen months later I turned 55 which meant I was finally able to draw a lump sum from my super. Centrelink specifies on their website that super lump sums are exempt from the income test in relation to Family Tax Benefits.
Because my SMSF (or the ATO) made a mistake and claimed on my tax return that I had received income (instead of a superannuation lump sum) which meant we were ineligible for Family Tax Benefit. The SMSF (or ATO) then reversed the error and corrected it to a superannuation lump sum but STILL Centrelink demands that i have to pay them $5032!
I think this robo debt thing is wrong as:
1. We were on a single low income with children to support
2. I received NO income for 16 months until I could draw on my own super.
3. I took money out of my super as lump sum payment which the Centrelink website clearly states is EXEMPT from the income test.
4. I paid tax on the superannuation that I had accumulated after many years of work and when I finally get to draw on my own money I get hit with a $5,200 debt after no income for 16 months!
This Centrelink robodebt policy has caused us significant stress and financial hardship. My superannuation only had accumulated $200,000 so I certainly wasn’t a “rich retiree” and having to draw out $5,200 to pay Centrelink has reduced my superannuation considerably.
I think the government should pursue multinational companies and Australian companies who are rorting our Tax system by hiding/minimising their earnings instead of chasing up low income Australians who don’t have the advantage of limitless accounting and legal resources to draw on to fight their case.