The Australian Securities and Investments Commission (ASIC) says paying attention to your super is a good thing because it’s your money for your retirement. However, some super fund members may make ill informed decisions about their super. Faced with tough times and job losses, some people might get caught up in illegal schemes to take their money out of super.
Promoters of illegal schemes single out people in financial strife, retrenched workers and some ethnic communities. Promoters may 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. They’re lying.
In the worst cases, the promoters steal all your money. ASIC has successfully obtained jail terms for the most serious offenders. In other 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.
Generally you can’t touch your super till you retire. If you meet strict conditions, you may be allowed to access your super legally, in cases of financial hardship or on ‘compassionate grounds’. The fund may not charge you for assisting you to legally withdraw your money but you may be required to pay tax on any money you do withdraw.
To find out more about super visit ASIC's consumer and retail investors website FIDO at www.fido.asic.gov.au/superwww.fido.asic.gov.au/superwww.fido.asic.gov.au/supe