Josh Becker:
This has been an issue that’s been an important one for the South East region, as victims are seeking changes to superannuation rules and bankruptcy laws that have essentially allowed paedophiles to protect their assets in superannuation. Well, in 2023, Edan van Haren was awarded $1.4 million in damages by the New South Wales Supreme Court of being abused by a convicted paedophile. His abuser, Maurice Van Ryn, has since used legal loopholes to avoid paying damages. The former Bega Cheese CEO Van Ryn was sentenced to 13 years for abusing 9 boys and girls since 2003 and then pled guilty to additional offences and was handed a further 9 years in prison.
Daniel Mulino is the Assistant Treasurer and joins us on the program this morning. Good morning.
Daniel Mulino:
Thanks very much for having me on, Josh.
Becker:
You’ve recently met with representatives of victims of child sex abuse and also local MP Kristy McBain about this issue. Are you willing to close the loophole around these bankruptcy laws?
Mulino:
Yeah, Josh, look, we are committed to closing this loophole. It’s really not appropriate, it’s not fair that perpetrators can hide assets in superannuation and avoid paying appropriate compensation. I’m very conscious that this is extremely harmful to victims. It compounds what is already a very distressing situation for them. As you said. I met with Minister McBain and we talked through the situation that you just outlined and she very clearly explained to me the harm that it’s doing and the repercussions it’s having through the community.
And as you say, I’ve met with representatives of victims from other states. I’m very conscious this is an issue that we need to deal with and we are very much committed to closing that loophole.
Becker:
What’s the timeline on closing that loophole in your mind?
Mulino:
As you say, my predecessor put out a discussion paper on this issue and then he received submissions. So, my department, Treasury, has worked through those submissions. We’re now in the process of putting together exposure draft legislation so that we can put that exposure draft legislation out, receive comments on that and then introduce that as soon as possible.
So, we’re very close now to the point where we’re able to put out that exposure draft legislation, but there is a very busy legislative agenda, so it just has taken some time to work through that drafting. But the drafting is well underway and I’m looking to put that out for consultation as soon as possible.
Becker:
Kelly O’Dwyer was Finance Minister in 2018 and said they’d accept the issue. I understand different side of politics but, and you’re now saying it’s a priority. But why is it taking so long? You know, it’s now been 7 years that it’s been flagged and on the political stage. Why is it so hard to see action in this space?
Mulino:
So, look, in the case of the last term of parliament, I think this was something where the government had made a strong commitment. We had put out a discussion paper and received submissions. There were a number of issues which were at the stage of being drafted towards the end of the last parliament and I’m now working through a range of those.
So, even in this first tranche of sitting weeks, there’s been a lot of legislation introduced in my portfolio and that includes things that have involved taxation characteristics. So, we’ve reduced HECS debt for example, last week we passed legislation in relation to Payday Super. And we were also working through legislation on banning genetic tests in life insurance, which was an issue which was working through the system last term as well.
So, look, we are getting through a lot of important issues. I just want to stress to people that this is a real priority. Drafting is well underway and I’ve indicated to my department that I’m very keen to see the exposure draft released as soon as we can.
Becker:
When you say as soon as we can, is it by the end of the year or is it in the next month? What sort of, how would you characterise that timeline?
Mulino:
Unfortunately, it’s not possible for me to give like very specific timelines. But I can say that the drafting is underway and that this is a real priority. I have met with victims, I’ve met with victim advocates. I’m very conscious of how this is an issue with urgency. So, I’m working with my department as matter of urgency on this.
Becker:
It is surprising that you can – that debts that are linked to frauds can’t be extinguished by bankruptcy like a Christopher Skase sort of situation. But court ordered damages that can be extinguished after 3 years in the case of a, for a child sex victim. So, on the face of it, it’s very strange that this loophole does exist.
Mulino:
Yeah, and as you say, it’s been there for a long time. So, this is really timely that we’re going to deal with this. And as you say, there’s a bit of an anomaly there, but it’s doubly problematic given that it’s an anomaly which affects people who are in such difficult situations. And so people I’ve talked to who have gone through these situations, they talk about the fact that they’re already having to deal with so much. And then this is added to it. It obviously compounds harm. So, you know, it is definitely a loophole that needs to be closed.
Becker:
Daniel Mulino, thank you for joining us on ABC South East.
Mulino:
Thanks so much, Josh.