Task

Part A

During the initial COVID lockdown in 2020, one of the emergency measures included a new superannuation condition of release that allowed individual to withdraw $20,000 from their superannuation across two financial years. Although there were eligibility requirements in the regulations, the desire to provide relief quickly meant that eligibility was self-declared, with no real-time testing against criteria.

At the same time, tax deductions for personal superannuation contributions remained available. So an individual may have been able to withdraw funds from their superannuation (either eligible under the loosely written criteria, or ineligible but making a false declaration), and then almost immediately make a deductible contribution to their superannuation and reduce their income tax.

Describe the basic requirements for the Part IVA ITAA36 anti-avoidance provisions to apply to the circumstances described.

Consider whether the circumstances described meet those basic reports, providing your reasoning and conclusion.