Compassionate early release of super moving to ATO on 1 July 2018

Responsibility for administering the early release of superannuation on compassionate grounds is set to move from the Department of Human Services (DHS) to the ATO, from 1 July 2018.

The Government said this would improve the early release of superannuation by ensuring applicants received funds sooner.

“These changes will expedite the assessment of early release applications, improve the integrity of the process and allow the funds to be released more quickly to successful applicants,” said Minister for Revenue and Financial Services Kelly O’Dwyer. Read more...

Government considers two options to allow victims of crime access to super

The Government is consulting on two different models allowing victims of crime to access the superannuation of perpetrators.

The first model would create a claw-back mechanism for ‘out of character’ superannuation contributions.

Under the proposal a victim of crime with an unpaid compensation order could apply for a court order for the super fund of the perpetrator to release ‘out of character’ contributions made since the six months prior to the perpetrator being charged.

The consultation paper says ‘out of character’ contributions could be determined by a “subjective assessment” by the super fund trustee or a court. Alternatively all voluntary contributions could be included, “as a proxy for out of character contributions”. Read more...

Government working on legislation to give victims of crime access to super

The Government is working on legislation to allow victims of crime to access superannuation, though the legislation may not pass in 2018, while consulting further on other changes to the early release of super rules.

Minister for Revenue and Financial Services Kelly O’Dwyer has confirmed the Government will allow victims of serious crimes to access the superannuation of perpetrators.

Minister O’Dwyer announced a review of the early release of superannuation benefits late in 2017, after media coverage that some perpetrators may have been using superannuation to shield their assets. The review was not just on access for victims of crime, but if the early release rules on compassionate grounds and severe financial hardship remained fit for purpose.  When announced the review was to report to Government in March 2018, but the Treasury website has the review reporting “in early 2018″. It is unclear if the report or has been given to the Minister or is complete. Read more...

Using super for medical expenses targeted in Government review

The Government is considering changing the rules around early release of superannuation on medical grounds, which has been rapidly increasing in recent years.

Minister for Revenue and Financial Services Kelly O’Dwyer has launched a review of the rules around the early release of superannuation. Minister O’Dwyer says, in the consultation paper, that stakeholders have raised with her the “the rapid increase in the use of superannuation for medical treatment”, among other issues.

The paper says that the total amount of superannuation released early on compassionate grounds has increased from around $42 million in 2000/01 to around $290 million in 2016/17. Though it is also noted that this is just over 0.01% of the total assets in superannuation. Read more...

Government to review early release of super: victims of crime, compassion, hardship

The Government has officially announced a review of early release of superannuation.

This includes a review of the rules around early release of superannuation on financial hardship or compassionate grounds. The review will also consider if and how superannuation should become available to pay compensation or restitution to the victims of crime.

Minister for Revenue and Financial Services Kelly O’Dwyer had said in November that the Government intended to review early release of super, following media reports that superannuation was being used to shield assets from victims of crime. Read more...

Government going to review early access to superannuation

The Government will soon start a review of early access to superannuation, and when superannuation can be kept from victims of crime.

Minister for Revenue and Financial Services, Kelly O’Dwyer, was recently asked on ABC radio about victims of serious crimes having access to the superannuation of perpetrators.

“We have a system at the moment that doesn’t allow access to someone’s superannuation assets under the existing law but I’m about to embark upon a review process as to how people can in fact access superannuation early and separately to that, whether people who are victims of crime, whether they ought to be able to access someone’s superannuation.” said Minister O’Dwyer. Read more...