POWERED BY MOMENTUM MEDIA
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.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
A member body representing some prominent wealth managers is concerned super funds’ dominance is sidelining small companies in capital markets.
Earlier this month, several Australian superannuation funds fell victim to credential stuffing attacks, which saw a small number of members lose more than $500,000.
Small- to medium-sized funds have become collateral damage in an "imperfect" model for super industry levies, a financial institution has said.
Big business has joined the chorus of opposition against the proposed Division 296 tax.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
90.28 3 y p.a(%)
2
GAM LSA Private Shares AU I
37.08 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.44 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.12 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
28.28 3 y p.a(%)
