The Minister for Superannuation announced on Fri 13.7.2012, that the Government would introduce penalties to deter promoters of illegal early release superannuation schemes. Mr Shorten said these promoters have in the past exploited vulnerable people by encouraging applications for rollover of superannuation balances. In these situations, he said the promoters have taken fees of up to 50% of the member’s superannuation balance.
Mr Shorten said promoters of these schemes generally target non-English speaking communities and take advantage of those who may not be fully aware of the rules regarding accessing superannuation benefits. He said legislation giving effect to the penalties is being progressed and will commence on Royal Assent.
Source: Minister for Superannuation press release No 044, 13 July 2012
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