A COVID-19 strategy plan - Check your super exposure

Urban Myth: Super is a protected investment. This is wrong, most Super is exposed to tax debts and creditor claims.

The false sense of security with superannuation as an effective asset protection strategy has arisen because the law says that a person's interest in super fund is not property available to a bankrupt's creditors. This protection is true, and it comes from section 116(2)(d) of the Bankruptcy Act. That is a point to note, the protection comes from the Bankruptcy Act! This protection does not arise until the relevant superannuation person is officially bankrupt.

But super is not safe in a pre-bankruptcy scenario. Do you want proof that busts this urban myth? Read on...