Recognise an SMSF scheme before you commit
Recognise an SMSF scheme before you commit
Know the warning signs of SMSF schemes before you act.
Promoters often present SMSF schemes as legitimate investment opportunities. They may promise high returns, tax advantages, or early access to super. Some arrangements use complex structures to make the offer look compliant − even when they breach the law.
Your SMSF must operate solely to provide retirement benefits. Arrangements that divert funds for other purposes put those benefits, and your fund’s compliance, at risk.
Be cautious if an offer:
- sounds unusually profitable or low risk
- promises access to super before you meet a condition of release
- involves complex or artificial structures you don’t understand
- pressures you to act quickly
- requires you to move super into a newly established SMSF for a specific investment.
Useful Resources
For practical tips on handling high-pressure sales tactics, see MoneySmart’s guidance on protecting your super from pushy sales calls.
Before committing your funds, take time to do your own checks. Review common SMSF schemes and warning signs on the ATO website and confirm how the arrangement complies with super and tax law before committing your funds. You should also check whether the adviser or promoter holds appropriate registration by searching the ASIC Financial Adviser Register or the Tax Practitioners Board register.
Promoters may advertise their arrangement as ATO-approved. It is important to note that the ATO do not approve specific investment products or schemes.
If someone approaches you about a suspicious scheme, report it confidentially using the ATO tip-off form or by calling 1800 060 062. Early reporting helps the ATO disrupt schemes and protect other trustees.
Taking time to check before you commit helps protect your retirement savings and the integrity of your SMSF.