Higher illegal early release penalties welcomed
People who are found to be engaged in illegal early release superannuation schemes are facing an even tougher penalty regime following the passage of further legislation through the Parliament this week.
The Tax and Superannuation Laws Amendment legislation has passed the Parliament, meaning that the promoters of early release schemes will now face tougher penalties under the Superannuation Industry Supervision Act and associated regulations, including the possibility of up to five years' imprisonment.
Passage of the legislation was particularly welcomed by the Australian Institute of Superannuation Trustees (AIST) which pointed to the number of instances the Australian Taxation Office (ATO) had been forced to act on the issue.
AIST executive manager, policy and research, David Haynes said that in 2011-12 the ATO had prevented 298 funds from entering the system and removed 427 existing funds where it suspected illegal access was planned.
"This data from the ATO shows that this is not a small problem and we welcome any measures that will promote a better retirement future for all Australians," he said.
Haynes said that cracking down on early release schemes was not rocket science, and the new legislation had his organisation's support in the interests of ensuring the efficient operation of the superannuation system.
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