The government’s early super release scheme has become a lucrative target for fraudsters who want to use the stimulus package for financial gain, according to ATO deputy commissioner Will Day.
“We’ve received intelligence about a number of dodgy schemes, including the withdrawal of money from superannuation and re-contributing it to get a tax deduction,” Mr Day said. “Not only is this not in the spirit of the measure (which is designed to assist those experiencing hardship), severe penalties can be applied to tax avoidance schemes or those found to be breaking the law.
“If someone recommends something like this that seems too good to be true, well, it probably is.”
The ATO warned that fraudsters might also be trying to prey on vulnerable Australians, and that it has already dealt with some examples of people developing schemes to try and steal money from the community.
“We know the overwhelming majority of Australians are honest, and we’ve worked hard to help those people who are impacted by COVID-19 as quickly as possible,” Mr Day said. “We also have an important role to ensure the integrity of the stimulus measures and when we uncover fraud or people seeking to exploit them, we’ll take action, as we know the community would expect us to do.”
The ATO is focusing on individuals who have applied for early super release without experiencing a change to their salary or employment situation, and individuals who have artificially arranged their affairs or made false statements to meet eligibility criteria. The ATO has also set up a confidential tip line – 1800 060 062 – and warned that penalties for fraud can include prosecution and imprisonment.
