Invest
Real estate agents warned not to advise tenants on super
The corporate watchdog has written a letter to Australia’s real estate bodies, expressing concern that some real estate agents are offering unlicensed financial advice to vulnerable tenants.
Real estate agents warned not to advise tenants on super
The corporate watchdog has written a letter to Australia’s real estate bodies, expressing concern that some real estate agents are offering unlicensed financial advice to vulnerable tenants.
Tim Mullaly, ASIC executive director – financial service enforcement, has issued the letter to the real estate institutes in each state, warning that some real estate agents are advising tenants to apply for early release of their superannuation.
“ASIC is aware that some real estate agents are advising tenants who are unable to pay their rent, or who may find themselves in such a situation in future, to consider applying for early release of their superannuation,” Mr Mullaly said.
“Recent media reports and social media commentary outlining this conduct by some real estate agents is of significant concern to ASIC and, we would hope, you.
“As you are no doubt aware, as part of the federal government’s COVID-19 economic response package, the Australian Taxation Office has announced it will implement a measure to allow individuals affected by COVID-19 to access their superannuation early, up to $10,000 in 2019-2020 and a further $10,000 in 2020-2021.”
Mr Mullaly said the primary concerns ASIC has with agents acting in this regard is that such conduct may constitute unlicensed financial advice in contravention of section 911A of the Corporations Act, or not be in the best interests of individuals in contravention of section 961B of the Corporations Act.
He highlighted how “financial advice must only be provided by qualified and licensed financial advisers, or financial counsellors, not by real estate agents who neither hold the requisite licence nor are an authorised representative of an Australian Financial Services Licensee.”
“The Corporations Act imposes significant penalties for a contravention of section 911A. For individuals, this can be a maximum of five years imprisonment and/or a fine of up to $126,000 (600 penalty units), and for corporations, a fine of up to $1,260 million dollars (6,000 penalty units).
“Tenants facing financial difficulty need sound financial guidance and, potentially, debt counselling. Specifically pointing them to and recommending them to consider the specific possibility of accessing superannuation is, again, likely to amount to a breach of the act.”
The letter said ASIC intends to monitor the situation closely and won’t hesitate to crack down on agents should they be found to be providing unlicensed financial advice.
“We will be raising these concerns with the relevant state regulatory bodies and will be writing directly to firms where it is alleged or brought to our attention that they have breached the law,” Mr Mullaly added.
“If contraventions of the licensing requirements of the Corporations Act are found, ASIC will not hesitate to act swiftly to protect vulnerable consumers.
“If real estate agents are of the view that they need to give guidance to a tenant regarding their financial affairs, they should consider referring tenants to information available on the ASIC MoneySmart website.”
RELATED ARTICLES
Advice
Australia’s small business succession crisis could trigger wave of SME sales
Australia is on the brink of a significant shift in its small business landscape as thousands of small business owners approach retirement without clear succession plans. This looming "succession ...Read more
Advice
Capital gains tax changes could hinder startup growth, warn industry leaders
The proposed changes to Capital Gains Tax (CGT) in Australia have sparked concerns among industry leaders, who fear the move could stifle the burgeoning startup sector. As the nation grapples with ...Read more
Advice
RBA raises interest rates amid inflation concerns, experts offer financial advice
In a move that has sparked widespread discussion, the Reserve Bank of Australia (RBA) has raised the cash interest rate by 0.25%, bringing it to 4.35%. This decision marks the third consecutive rate ...Read more
Advice
State Street recognises excellence in institutional financial journalism at 2025 Press Awards Asia Pacific
In a celebration of journalistic excellence, State Street Corporation (NYSE: STT) announced the winners of the State Street Institutional Press Awards Asia Pacific 2025 in Hong Kong on April 21, 2026Read more
Advice
Property & Business Services surge reshapes March business landscape
In a revealing snapshot of the current business climate, the latest Lawpath New Business Index has highlighted a significant shift in the Australian business landscape, particularly within the ...Read more
Advice
Beyond the six-pack: Why Australia’s investor ‘elite’ now looks like a $12m balance sheet
Counting doors is out; managing enterprise-grade balance sheets is in. A decade-old yardstick—own six properties and you’ve ‘made it’—has been eclipsed by the realities of tighter credit, higher ...Read more
Advice
Competing at the speed of change: A playbook for leaders in fast-moving markets
Markets don’t just move — they compress decision cycles. The winners aren’t those with the most data, but those who convert weak signals into trusted actions fastest. Building on lessons from ...Read more
Advice
From broker tips to boardroom playbook: five investable lessons for disciplined growth in 2026
The real edge in 2026 won’t come from a hot tip; it will come from disciplined risk controls, clean data, and governance that can survive a stress test. Australia’s regulatory and technology context – ...Read more
Advice
Australia’s small business succession crisis could trigger wave of SME sales
Australia is on the brink of a significant shift in its small business landscape as thousands of small business owners approach retirement without clear succession plans. This looming "succession ...Read more
Advice
Capital gains tax changes could hinder startup growth, warn industry leaders
The proposed changes to Capital Gains Tax (CGT) in Australia have sparked concerns among industry leaders, who fear the move could stifle the burgeoning startup sector. As the nation grapples with ...Read more
Advice
RBA raises interest rates amid inflation concerns, experts offer financial advice
In a move that has sparked widespread discussion, the Reserve Bank of Australia (RBA) has raised the cash interest rate by 0.25%, bringing it to 4.35%. This decision marks the third consecutive rate ...Read more
Advice
State Street recognises excellence in institutional financial journalism at 2025 Press Awards Asia Pacific
In a celebration of journalistic excellence, State Street Corporation (NYSE: STT) announced the winners of the State Street Institutional Press Awards Asia Pacific 2025 in Hong Kong on April 21, 2026Read more
Advice
Property & Business Services surge reshapes March business landscape
In a revealing snapshot of the current business climate, the latest Lawpath New Business Index has highlighted a significant shift in the Australian business landscape, particularly within the ...Read more
Advice
Beyond the six-pack: Why Australia’s investor ‘elite’ now looks like a $12m balance sheet
Counting doors is out; managing enterprise-grade balance sheets is in. A decade-old yardstick—own six properties and you’ve ‘made it’—has been eclipsed by the realities of tighter credit, higher ...Read more
Advice
Competing at the speed of change: A playbook for leaders in fast-moving markets
Markets don’t just move — they compress decision cycles. The winners aren’t those with the most data, but those who convert weak signals into trusted actions fastest. Building on lessons from ...Read more
Advice
From broker tips to boardroom playbook: five investable lessons for disciplined growth in 2026
The real edge in 2026 won’t come from a hot tip; it will come from disciplined risk controls, clean data, and governance that can survive a stress test. Australia’s regulatory and technology context – ...Read more
