Financial Rights has drafted this submission. CHOICE and the Superannuation Consumers’ Centre have endorsed it and concur with the concerns raised.
Many of the issues raised by the concept of releasing one’s superannuation early are difficult, complex and have real impacts upon people’s lives. Financial Rights hears regularly from people experiencing severe financial hardship or disadvantage who simply do not understand why they cannot access retirement funds that they see as their own. Each case is unique and the application of compassion or assistance in each situation will lead to the early release in some situations, and in others require denying such early release. There are many grey areas. Establishing strict hard and fast rules is necessary but early release requires some flexibility, such as the residual discretion on the part of the Regulator.
Financial Rights is concerned with the emergence of third parties, both in independent businesses and as in-house staff for instance at medical and dental practices, specialising in and profiting from assisting people to access their superannuation early. This practice can be exploitative and harmful, can undermine the principles underpinning early release of superannuation, and can threaten consumers’ physical and financial health. Consideration should be given as to ways in which to minimise this practice.
