The Minister for Revenue and Assistant Treasurer, Senator Helen Coonan, today announced a review of the operation of Part 23 of the Superannuation Industry (Supervision) Act 1993 (SIS Act) which allows financial assistance to be granted to funds that suffer loss from fraudulent conduct or theft.
The first determination to grant financial assistance under Part 23 occurred in June 2002. To date, this Government has made 466 determinations to grant financial assistance totalling approximately $33 million in relation to frauds in recent years.
Superannuation fraud represents a small percentage of the $520 billion in assets controlled by Australian superannuation funds.
The Report of the Superannuation Working Group, Options for Improving the Safety of Superannuation, recommended the review of the operation of Part 23 and consideration of possible amendments to it.
The Government is now seeking input from, and consultation with, relevant stakeholders.
"Part 23 provides an important mechanism to compensate superannuation fund members who suffer a loss of their retirement savings due to fraud or theft," Senator Coonan said.
"The Part 23 review will enable the Government to consider ways to improve protection offered to superannuation fund members and will consider the appropriate level of compensation. I encourage industry to participate in the review," Senator Coonan said.
A copy of the Review Paper can be found on the Department of Treasury webpage at http://www.treasury.gov.au/whats_new.asp.
Senator Coonan invites those wishing to make a submission to the Review to e-mail contributions to part23review@treasury.gov.au or to write to:
Part 23 Review
Superannuation and Insurance Unit
The Treasury
Langton Crescent
PARKES ACT 2600
Submissions close on 1 August 2003.