Be Aware of SMSF Schemes: Protecting Your Retirement Savings

Self-managed super funds (SMSFs) give Australians greater control over their retirement savings—but with control comes responsibility. While SMSFs offer flexibility and tax advantages, they are increasingly being targeted by promoters of risky or illegal schemes that can leave unsuspecting trustees exposed to serious consequences.

Whether you're an SMSF trustee or adviser, it's vital to be aware of the warning signs and risks associated with SMSF schemes.

What Are SMSF Schemes?

SMSF schemes are arrangements—often marketed as opportunities to access super early, reduce tax, or make "high-return" investments—that breach superannuation or tax laws. These can include:

• Early access to super before retirement or meeting a condition of release

• Aggressive or artificial tax minimisation schemes

• Inappropriate investment structures, such as property development with related parties or complex loans

• Overseas investment traps or crypto-assets pushed by unlicensed operators

  
  

These schemes are often promoted by individuals or companies with no Australian Financial Services (AFS) licence or SMSF expertise. They may use technical language to appear legitimate but typically lack any real substance or legal compliance.