ATO warns of illegal early super release
An increase in arrangements offering illegal early access to super benefits via self-managed super funds has prompted a taxpayer warning from the Australian Taxation Office (ATO).
Tax Commissioner Michael D’Ascenzo said: “We have recently identified an increase in these arrangements targeted at people from non-English speaking backgrounds, particularly in the western suburbs of Sydney.”
D’Ascenzo said the arrangements attracted significant legal and financial penalties for both organisers and individuals.
“I am concerned that people taking up these offers are being misled about the taxation and superannuation implications, and of the illegal nature of these arrangements. Those involved may lose their hard-earned super savings and suffer severe tax complications.”
The ATO is working closely with the Australian Securities and Investments Commission (ASIC) in a joint effort to combat these illegal arrangements.
The ATO said those who organise and promote these arrangements may face criminal charges and prosecution, with previous prosecutions resulting in significant penalties including imprisonment.
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