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Retirement

Penalties and pitfalls of the early release of super

By Grace Ormsby · January 31 2020
Reading:
egg

Retirement

Penalties and pitfalls of the early release of super

By Grace Ormsby
January 31 2020
Reading:
egg
Penalties and pitfalls of the early release of super

Penalties and pitfalls of the early release of super

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By Grace Ormsby · January 31 2020
Reading:
egg
Penalties and pitfalls of the early release of super

The Australian Taxation Office has issued a renewed warning to Australians about the potential ramifications of illegal early release of super.

Specific medical conditions or severe financial hardship are two of the very limited circumstances where early release is legal.

In the new warning, the ATO has urged individuals to “beware of people promoting early release of super schemes”.

“They might tell you they can help you withdraw your super to pay off credit card debt, buy a house or car, or go on a holiday,” it said.

The warning comes not long after a man was sentenced to three years in jail after orchestrating the illegal early release of superannuation for 25 people in the community. 

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An SMSF adviser was also banned from providing financial services last year after he was found to have been enabling people to use their superannuation savings to buy property. 

Illegal schemes will cost you a lot more than the super you withdraw, the ATO has flagged, with severe fees and penalties for those people that do the wrong thing.

Not only this, promoters of such schemes that encourage the early release of super will also face prosecution, with the ATO asking anyone who has been approached to participate in such a scheme to contact the office directly.

Penalties and pitfalls of the early release of super
Penalties and pitfalls of the early release of super
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About the author

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

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About the author

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

Join The Nest Egg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

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