26.10.09 - Early access to super and illegal schemes

Author: AustralianSuper

Early access to super and illegal schemes

Generally you can’t touch your super until you retire. Yet each year many people are caught unaware by illegal schemes which aim to take their money out of super.

Illegal schemes

Organisers of illegal schemes who claim you can withdraw your super, or use a ‘self managed fund’, to pay off debts, make a deposit on a home, or buy a car or holiday, are lying.

In the worst cases, the scheme organisers steal all your money. In some cases, promoters demand a commission, usually taking a fifth or more of your super. They may get you to sign false statements, exposing you to fines or possibly jail. If you finally do get what’s left of your money, you could end up having to pay the whole lot to the Tax Office in back taxes and penalties, because you did not keep it until you retired.

Legal ways to withdraw your super

If you meet strict conditions, you may be able to access your super legally, in cases of financial hardship or on compassionate grounds. Tax may also be applied on the withdrawal of your benefit in cash, depending on your age, the amount of your benefit and its different components.

Report your concerns

If you are concerned that you have become a victim of an illegal super scheme, contact AustralianSuper, the Australian Prudential Regulation Authority, or your local police.