Previous observations of the luminous Seyfert 1 galaxy 1H 0419-577 have found its X-ray spectrum to range from that of a typical Seyfert 1 with 2–10 keV power law index \Gamma \sim 1.9 to a much flatter power law of \Gamma \sim 1.5 or less .
We report here a new XMM-Newton observation which allows the low state spectrum to be studied in much greater detail than hitherto .
We find a very hard spectrum ( \Gamma \sim 1.0 ) , which exhibits broad features that can be modelled with the addition of an extreme relativistic Fe K emission line or with partial covering of the underlying continuum by a substantial column density of near-neutral gas .
Both the EPIC and RGS data show evidence for strong line emission of OVII and OVIII requiring an extended region of low density photoionised gas in 1H 0419-577 .
Comparison with an earlier XMM-Newton observation when 1H 0419-577 was ‘ X-ray bright ’ indicates the dominant spectral variability occurs via a steep power law component .