Government crackdown on early-release super schemes

14 January 2013
| By Staff |
image
image
expand image

The Government will introduce penalties for promoters of early-release superannuation schemes as part of its Stronger Super reforms.

Promoters of illegal early-release schemes exploit vulnerable Australians by encouraging applications for rollover of superannuation balances and claiming up to 50 per cent of the member's retirement savings in commissions.

It said non-English speaking people and those who were not fully aware of the rules regarding super benefits were generally targeted.

Up to $8 million of super benefits had been illegally released by some schemes, generating millions in commissions for promoters.

Some promoters had "gone further" by exploiting identity data for criminal purposes or by stealing the member's entire balance, it said.

Minister for Financial Services and Superannuation Bill Shorten said the penalties were an important measure in protecting the Government's retirement policy.

"Introduction of these penalties is an important step to protect the integrity of the superannuation scheme and prevent people's entire superannuation savings being stolen," he said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

1 year ago
Kevin Gorman

Super director remuneration ...

1 year ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

1 year ago

The future of superannuation policy remains uncertain, with further reforms potentially on the horizon as the Albanese government seeks to curb the use of superannuation ...

14 hours ago

Super funds had a “tremendous month” in November, according to new data....

4 days 13 hours ago

Australia faces a decade of deficits, with the sum of deficits over the next four years expected to overshoot forecasts by $21.8 billion....

4 days 18 hours ago