Ads 'Misleading' Australians On Superannuation Tax Breaks

By ExpatBriefing.com Editorial 28 October, 2013

The Australian Securities and Investment Commission (ASIC) has warned consumers not to be misled by adverts claiming that they can use their superannuation to purchase a rental property and receive AUD100,000 (USD96,240) "tax free."

The warning relates to adverts promoting Australia's National Rental Affordability Scheme (NRAS), which is run by the Government in partnership with the states and territories. It is designed to promote investment in affordable rental housing, and offers direct payments and tax offsets for building and leasing housing to low and moderate income earners. The scheme is principally targeted at larger scaled property investments, but individual investors can access the NRAS through an approved participant.

The ASIC believes that a number of adverts promoting the scheme do not provide balanced messages about the features, benefits, and risks of investing via a self-managed superannuation fund (SMSF) in an NRAS property.

ASIC Commissioner Greg Tanzer explained: "ASIC is focused on protecting consumers and where we see people recommending consumers invest using their SMSF we want to ensure they are providing balanced messages that comply with the law. It is important that ads are clear, accurate and balanced, especially when consumers are looking for investments for their long-term retirement.

"Consumers need to be cautious when presented with claims which appear too good to be true and should do their research before investing. Consumers should think carefully about how long they intend to hold the NRAS property, ensure that they understand the income and capital potential of an NRAS property and satisfy themselves that it fits with their investment purpose."

Tags: Tax | Investment | Law | Retirement | Australia | Expats | Investment | Invest | Investment |

 





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