FPA joins accountants on wider victims of crime super access

Mike Taylor

Managing Editor/Publisher, Financial Newswire

28 February 2023

The Financial Planning Association (FPA) has joined with the major accounting groups in calling on the Government to extend the manner in which access can be gained to superannuation accounts to compensate victims of “heinous” crimes.

The accounting groups, the FPA and the SMSF Association want Government proposals to provide superannuation access for the victims and survivors of child sexual abuse to be “broadened to cover victims and survivors of other heinous crimes”.

In doing so, the accounting and financial planning groups highlighted a reference in a Treasury discussion paper that “In recent years, there have been a number of high-profile reports of convicted child sexual abuse offenders deliberately hiding millions of dollars’ worth of assets in superannuation accounts to defeat compensation claims”.

The joint submission to Treasury suggests that all personal contributions, including those that are claimed as a tax deduction and salary sacrifice contributions that do not fit the offender’s normal contribution pattern.

“Contributions made for a spouse and contributions split with a spouse should also be considered, as should unclaimed superannuation monies held by the Australian Taxation Office,” it said.

“It is possible to withdraw super benefits and have them deposited into a super fund in the name of another person. The bankruptcy-superannuation provisions contain “tracing” rules and similar provisions would be required here.”

“It is often reasonably clear that contributions are in or out of character. The Australian Financial Complaints Authority could be given sufficient powers to adjudicate any dispute.”

“We do not support the Discussion Paper’s suggestion that “all personal contributions made in the period starting either six or 12 months before the day the offender was charged to the day the court grants the victim or survivor access to the offender’s relevant superannuation interest, would be deemed to be ‘additional’”,” the submission said. “We believe this period of time is too short.”