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 ~ 1.9 to a much flatter power law of Gamma ~ 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 ~ 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.
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