AIST highlights tax file number privacy concerns

In a submission to the Government, the Australian Institute of Superannuation Trustees (AIST) has emphasised the importance of safeguarding member privacy when it comes to the use of tax file numbers (TFN) for identification purposes.

The Government proposes to use TFNs as a primary locator of super fund members, and to facilitate the account consolidation that will be mandated under the Stronger Super regulatory environment.

The AIST is concerned that the explicit language contained on the Stronger Super website about member privacy is missing from the explanatory commentary and the exposure draft, according to AIST chief executive Fiona Reynolds.

The Government should tie the regulations concerning member privacy to the Information Commissioner's TFN Guidelines 1992, Reynolds said.

The AIST also argued that TFNs should be used for between-fund searches using online superannuation facilities such as Supermatch.

The use of TFNs for this purpose could be based on prior consent from members about the use of TFNs for identification purposes, Reynolds said.

Alternatively, members could be notified in advance of the search, giving them the option to opt out if they wish, she added.