Real estate agents are slammed for ‘sending threatening letters to tenants telling them to use their superannuation to keep paying rent’
- Real estate agents are telling tenants to use their superannuation to pay rent
- Australia’s corporate watchdog warning tenants to ignore the unsolicited advice
- But agents say they are alerting tenants to measures introduced by government
Real estate agents are being slammed for offering ‘unhelpful’ financial advice to tenants, telling them to use their superannuation to continue paying rent.
Australia’s corporate watchdog is warning tenants to ignore unsolicited financial advice from real estate agents.
But real estate agents claim they are just alerting tenants to the financial hardship measures introduced by federal governments.
The Australian Council of Trade Unions (ACTU) is urging the Real Estate Institute of Australia to stop its members from telling tenants to access their superannuation early, the Herald Sun reported.
Australia’s corporate watchdog is warning tenants to ignore unsolicited financial advice from real estate agents
The national cabinet is expected to discuss the issue of residential and commercial tenancies on Friday.
The Australian Securities and Investments Commission (ASIC) said only qualified individuals are supposed to provide advice on accessing superannuation.
ASIC also warned withdrawals could impact on retirement options later on.
‘Anyone who gives financial advice must have an Australian financial services (AFS) licence or be an authorised representative of a licensed business,’ an ASIC spokesperson said.
‘You should only seek advice from licensed advice businesses or authorised financial advisers. You will be better protected if things go wrong and you will have access to free dispute resolution services.’
Minister for Housing Michael Sukkar told ABC TV on Wednesday that landlords and tenants are expected to ‘work this out for themselves’.
‘Unless you’ve got an arrangement with your landlord that takes into account your financial circumstances, you are required to pay your rent,’ he said.
‘We’ve strengthened the safety net to ensure people are able to meet the essential costs of day-to-day life.’
Mr Sukkar said the moratorium on evictions is to ensure people are not left without a home during the coronavirus pandemic.
‘But at the same time we have to be sensitive to the financial realities for landlords who have repayments that they have to make and rely on the income stream from those properties in order to meet those repayments,’ he said.
Real estate agents claim they are just alerting tenants to the financial hardship measures introduced by federal governments
ACTU President Michele O’Neil claims residential tenants are receiving ‘threatening correspondence from their real estate agents regarding the payment of rent and notice around evictions’.
The government has granted people early access to their superannuation during the coronavirus pandemic as they are experiencing financial hardship.
Labor Shadow Assistant Finance Treasurer Stephen Jones is also urging ASIC to issue a warning to real estate agents.
‘There are now widespread media reports of real estate agents advising tenants to access their superannuation funds if they are facing difficulty in paying their rent. We have received copies of some of these communications,’ Mr Jones wrote in a letter to ASIC commissioner James Shipton seen by News Corp.
‘We are concerned that this advice may not be in the best interest of individuals.’