Warning on illegal early access to super in tough times

The Association of Superannuation Funds of Australia (ASFA) has warned that large-scale job cuts could result in more schemes involving illegal early access to superannuation.

In a submission to the Australian Taxation Office (ATO) responding to an ATO paper on illegal early access to self-managed superannuation funds, ASFA said it believed the ATO should work in conjunction with the Australian Securities and Investments Commission to consider targeted communications for “certain groups of individuals” who had been the focus of illegal early access promoters.

“For example, where employers announce large-scale job losses or where it is seen through media reports or other means that employers are involved in drawn out industrial action, ASFA believes it would be worthwhile for the ATO to contact the employers and the employees involved to warn them that illegal early access promoters may seek to exploit the angst and uncertainty surrounding their circumstances,” the submission said.

It said the ATO might also provide additional data with the Australian Prudential Regulation Authority-regulated funds that might provide early warning of something untoward occurring.

The ASFA submission said these untoward events might be rollover requests from specific postcodes or the name of a specific fund that is the vehicle for the illegal early access scheme.