Early release super schemes come under Government scrutiny
Promoters of early release of superannuation benefits schemes are set to face tough penalties under proposed additions to the Government's Stronger Super reforms.
Such schemes are usually promoted as a way for individuals to access super benefits before being eligible to do so.
According to the Government, those promoting the illegal arrangements usually target non-English speaking individuals or those not fully aware of the rules around access to superannuation, the Government stated.
In the past, individuals or entities have encouraged members to rollover their superannuation, only to have the promoters take fees of up to 50 per cent, the Government stated.
In some cases, up to $8 million has been illegally released from a member's super balance, generating millions in commissions for promoters.
In others, promoters have used identify theft for criminal purposes, including stealing an entire superannuation balance, according to the Government statement.
"This measure is an important part of the Government's Stronger Super reforms and will provide penalties for those who promote schemes which undermine the Government's retirement policy", said Bill Shorten, Minister for Financial Services and Superannuation.
It is not yet understood how the penalties will operate, but legislation giving effect to this measure is underway and will commence on Royal Assent.
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