Illegal super schemes

Illegal super schemes


Australian taxpayers should be aware that some promoters claim to offer early access to super savings by transferring a person’s super into a self-managed super fund.

These schemes are illegal and heavy penalties will apply to those who participate in such schemes.

Generally, individuals cannot access their super until they retire or meet a condition of release.

Some people promoting illegal super schemes will say that they can help access a person’s super now to pay off credit card debt, buy a house or car, or go on holiday. These schemes are illegal and may cost those who engage in them a lot more than the super they access.

Illegal super schemes usually involve a promoter offering to help a person access their super early. Promoters of illegal super schemes usually:

  • encourage people to transfer their super from their existing super fund to a self-managed super fund (SMSF)
  • target people who are under financial pressure or who do not fully understand Australian superannuation laws
  • claim that a person’s super can be used for anything (which is not true)
  • charge high fees and commissions

Those who participate in one of these schemes may become a victim of identity theft. Identity theft happens when someone uses another person’s personal details to commit fraud or other crimes. Once a person’s identity has been stolen and misused, it can take years to fix.

Categories

If you believe the matters discussed above are relevant to your business, please contact Darren Smith of our office to discuss further.


Darren is a Chartered Accountant with extensive experience, including working in the big 4 and medium sized firms before becoming a partner of a city based firm in 2000.

He has gained much experience and has extensive knowledge in providing business and taxation advice, superannuation planning, negotiation of sales and acquisitions of businesses and property development. His client base covers a wide range of industry groups.

Darren works with business owners to grow their businesses and create personal wealth within and outside of their business.


+ There are no comments

Add yours