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Government crackdown on early-release super schemes
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.
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