The regulator stated that these schemes are illegal and could cost more than an individual’s retirement savings.
It added that SMSF trustees and members should be on the lookout for dodgy advice, and not take up any offers without first checking if they are legal and learn how to spot the warning signs.
The advice from the ATO continued that if an SMSF trustee or member has been approached by anyone telling them that they can withdraw their super early (without meeting a condition of release) they need to immediately stop any involvement with the scheme, organisation or the person who approached them.
They must not sign any documents or provide any personal details.
Finally, they should also report any interaction they may have had with a promoter to the ATO as soon as possible.
If an SMSF member illegally accesses their super early, they can lose their retirement savings, pay extra tax, penalties and interest, and be disqualified from being an SMSF trustee. The names of disqualified trustees are published online.
If a trustee has been involved in a scheme, they should contact the ATO immediately and it will take their voluntary disclosure and circumstances into account when determining any penalties.
