Australian Real Estate Agents Have Suggested Tenants Use Their Superannuation To Pay Rent

The coronavirus has caused tens of thousands of Australians to lose their job.

Many have been wondering how they'll afford basic groceries and pay bills and rent when their next influx of cash isn't certain.

The Australian government has announced several stimulus packages to help these people, but there are loads who fall through the cracks.

The Prime Minister has urged tenants and landlords work out an agreement that is suitable to both parties, however some real estate agents have been suggesting something else.

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The Australian Securities and Investments Commission (ASIC) has been informed some tenants were told to use their superannuation to pay rent.

That hard earned cash is meant to be your safety net once you retire.

But ASIC has written a letter to real estate agencies across the country to warn them that the suggestion of using your super to pay rent can be an offence.

The letter reads: "ASIC is aware that some real estate agents are advising tenants who are unable to pay their rent, or who may find themselves in such a situation in future, to consider applying for early release of their superannuation.

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"Recent media reports and social media commentary outlining this conduct by some real estate agents is of significant concern to ASIC.

Real estate agencies caught up in this could be in contravention of section 911A and 961B of the Corporations Act.

The letter continues: "Financial advice must only be provided by qualified and licensed financial advisers, or financial counsellors, not by real estate agents who neither hold the requisite licence, nor are an authorised representative of an Australian Financial Services Licensee."

The penalty, if caught and convicted, for individuals can be up to five years in prison and/or a fine of up to $126,000. Corporations can be hit with a fine of up to $1.26 million.

ASIC has urged real estate agents who are confronted with a tenant in financial difficulty to point them in the direction of a financial advisor.

Topics: News, Australia

Stewart Perrie

Stewart Perrie is a Trending Journalist at LADbible. His first job was as a newsreader and journalist at the award winning Sydney radio station, Macquarie Radio. He was solely responsible for the content broadcast on multiple stations across Australia when the MH17, Germanwings and AirAsia disasters unfolded. Stewart has covered the conflict in Syria for LADbible, interviewing a doctor on the front line, and has contributed to the hugely successful UOKM8 campaign.

@stewartperrie