The Federal Government says it is moving to expand access to financial assistance for people whose superannuation is lost as a result of fraud or theft.
At the same time as the Government weathers criticism over its decision to remove the need for small businesses to report superannuation contributions to employees, the Assistant Treasurer, Senator Helen Coonan, says the Commonwealth will be moving to protect the interests of people who suffer superannuation losses.
However, the Federal Opposition’s spokesman on Retirement Incomes and Savings, Senator Nick Sherry, says the Government’s initiative represents minimal assistance and fails to provide adequate compensation in critical areas if the regulatory system fails.
He says this includes full 100 per cent compensation in the event of theft or fraud, treatment of the unpaid nine per cent superannuation guarantee as an employee entitlement and protecting post-retirement pensions.
Coonan says the decision follows the release of a review of the Operation of Part 23 of the Superannuation Industry (Supervision) Act 1993 which allows people to apply for financial assistance when their fund suffers losses as a result of fraud or theft.
“It was clear from the work of the review and the stakeholder consultations that eligibility for financial assistance under Part 23 needed to be expanded to ensure equitable treatment for those whose superannuation is stolen or defrauded,” Coonan says.
She says that the Minister has broad powers to provide grants of financial assistance to members of accumulation funds who fall prey to thieves and fraudsters and that since the SIS Act was established, more than 802 determinations have been made granting approximately $44 million.
Coonan says that the intended legislative changes will ensure that members of defined benefit funds are granted the same protection as members of accumulation funds, and that individual members who transfer to eligible funds or self-managed arrangements may also be entitled to financial assistance.
