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Man sentenced over illegal superannuation scheme

A Sydney man is facing three years in jail after pleading guilty to arranging the early release of superannuation funds.

Mr Kent Nguyen was found to have created, operated and benefited from an illegal self-managed superannuation fund.

The 51-year-old organised the early release of superannuation funds for about 25 people.

He withdrew a total of more than $700,000 from the funds and pocketed a high portion, telling his clients that the money had been paid to the ATO as tax.

Australian Institute of Superannuation Trustees Eva Scheerlink tells Ross Greenwood a superannuation fund shouldn’t be accessed early.

“Superannuation is for your retirement, it shouldn’t be accessed early for any reason other than legal reasons like financial hardship or compassionate grounds.

“Australians are not very good savers, so if we didn’t lock the money away like that we probably wouldn’t have a lot for a rainy day.”

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Image: Getty/Parinda Yatha/EyeEm