Australian real estate agents face fines and jail if tenants told to use super to pay rent

PHOTO: Many households in Australia are struggling to pay the rent after thousands of people were suddenly thrown out of work by the shutdown of hospitality, entertainment and retail industries due to the coronavirus crisis. Photograph: Jenny Evans/Getty Images

Warning from corporate regulator comes as tenants complain of heavy-handed demands from landlords during the coronavirus crisis

The corporate watchdog has warned real estate agents they face up to five years jail if they ask tenants to withdraw super in order to pay the rent.

In a letter to peak real estate bodies, the Australian Securities and Investments Commission’s head of enforcement, Tim Mullaly, said the regulator was closely monitoring the situation and “will not hesitate to act swiftly to protect vulnerable consumers”.

“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,” Mullaly said.

The move comes as tenants complain of heavy-handed demands from landlords for rent payments and ahead of a meeting of national cabinet on Friday that is expected to consider the issue.