The Australian Institute of Superannuation Trustees (AIST) has been reporting an increase in cases of financial abuse with mostly women notifying them that their superannuation was accessed through coercion or fraud by a domestic partner.
AIST chief executive, Eva Scheerlinck, said the organisation estimated around 70,000 of 1.5 million women who withdrew superannuation through the early release scheme would have done so as a result of coercion.
In its pre-Budget submission, the organisation said the lack of eligibility evidence needed for the early release of super scheme represented the first time women’s superannuation had become a “widespread target” for coerceive control.
A survey by the Australia’s National Research Organisation for Women’s Safety (ANROWS) for its research paper ‘Intimate partner violence during the COVID-19 pandemic’ found that one in three respondents experienced financial abuse at the hands of their partner. Nearly half of those (43.2%) said this included pressure to access their superannuation.
“The Government needs to undertake a comprehensive assessment of the number of women coerced into accessing their superannuation during the early release scheme and the detrimental impact this will have on their retirement,” Scheerlinck said.
“Without this information, future policy decisions could unintentionally facilitate abusive behaviour.”
Scheerlinck’s remarks follow the AIST’s pre-Budget submission which made 20 recommendations including measures around the Super Guarantee, self-employed workers, the Retirement Income Covenant and tax concessions.
The organisation of trustees also highlighted that the bumper superannuation returns over the last 18 months disguised the fact many Australians were being left behind.
“This includes women, low- and middle-income earners, and vulnerable people including those experiencing family violence,” Scheerlinck said.
“Although our retirement savings system is among the best in the world, the Government has a great opportunity with the next Budget to ensure it works to the benefit of all Australians, not just those with an unbroken work pattern.”
Other AIST recommendations, aimed at boosting the equity and fairness of the super system, included:
- committing to increasing the Superannuation Guarantee (SG) to 12% by 1 July 2025
- amending superannuation and tax law to ensure children adopted under traditional Aboriginal and Torres Strait Islander law are treated like other children
