There are people promoting early access schemes which are illegal and could cost you more than your retirement savings. Be on the lookout for dodgy advice, don't take up any offers without first checking if they are legal and learn how to spot the warning signs.
Promoters of illegal early access schemes usually:
- tell you to transfer or rollover your super to an SMSF so you can access it
- target vulnerable people, including those who are under financial pressure or unaware of super laws
- claim that you can access your super and put the money towards anything you want
- charge high fees and commissions
- request your identity documents.
If you have been approached by anyone telling you that you can withdraw your super early (without meeting a condition of release) you need to:
- stop any involvement with the scheme, organisation or the person who approached you
- not sign any documents
- not provide them with any of your personal details.
- You should also report any interaction you may have had with a promoter to the Australian Taxation Office (ATO) as soon as possible.
If you illegally access your super early, you can lose your retirement savings, pay extra tax, penalties, and interest, and be disqualified from being an SMSF trustee. Disqualified trustees names are published online.
If you have been involved in a scheme, contact the ATO on 13 10 20 immediately. They will take your voluntary disclosure and circumstances into account when determining any penalties.
For more information refer to Accessing your super early may be illegal on the ATO website.