8 May 2020

Interview with Laura Jayes, First Edition, Sky News

Note

Subjects: National Cabinet; Early access to superannuation fraud

LAURA JAYES:

Everyone is sweating on National Cabinet today to see what life will look like in the next couple of weeks, what do you think it will look like?

MICHAEL SUKKAR:

Well Laura I can tell you in my own household, we’re sweating on the outcome of National Cabinet and I imagine that’s the same throughout the country. Look as I’ve said many times over the last few weeks, credit to the Prime Minister and the National Cabinet on being able to steward us through these health challenges and I suppose my view has always been, and I don’t have any particular insights into the National Cabinet not being a member obviously, as we stepped into restrictions I suspect we’ll be stepping out of restrictions in a staged way, not too dissimilar to what some of the jurisdictions around the country have already announced. So I think that sort of staged approach would be sensible. But I can assure you there are millions of people around Australia, you’re right, who are really keen to see some level of normality back in our lives.

LAURA JAYES:

Yeah retail and food services, we know from the statistics, have taken the biggest hit. If restrictions are lifted on these sectors in stage one, will that make a significant improvement early to our overall economic prospects?

MICHAEL SUKKAR:

Look there’s no doubt that that makes a significant difference. As the Treasurer outlined in his National Press Club speech earlier this week, for every week of restrictions there’s a $4 billion cost. These are not cost free decisions these sorts of restrictions and no doubt some of the earliest and hardest hit areas of the economy were hospitality, as you say. So look, there’s no doubt that would have a significant impact on the upside and would be one of the benefits of Australia really being ahead of the world in getting on top of the health issues.

LAURA JAYES:

Well you’re coming to us live from Fortress Victoria this morning, are you concerned that economic recovery in your state might be a little bit slower than the rest of us?

MICHAEL SUKKAR:

Well I think the point to make is nothing is cost free, Laura. Everybody here from the Prime Minister to the Premiers to the Chief Ministers are balancing difficult judgements. I accept that, I think we all accept that and we’ve given all of those leaders that sense of support. But as the Treasurer again outlined earlier this week, these are not cost free decisions. So if a state like Victoria was going to go down the path of deeper and harder restrictions for a longer period of time than comparable states, then of course there’s a cost. There’s a cost in jobs, there’s a cost in prosperity and what that does for people’s lives. So I think it’s about accepting that these are not cost free decisions and again, Premiers and the Prime Minister, they’re weighing difficult decisions but it’s clear that where there is an acceptable pathway forward to easing restrictions, we’ve got to remember that these are people’s lives and livelihoods that are on the line and we’ve got to continue to balance those, and harder and deeper restrictions for longer are not cost free, they have a significant cost on people’s economic welfare.

LAURA JAYES:

Yesterday we reported on another story that the ATO had been compromised. Are you looking at any cases of fraud here?

MICHAEL SUKKAR:

What you’re referring to Laura is not a compromise of the ATO. So it has been referred to the AFP, a case of identity theft essentially, where bogus claims have been put through the early release of super scheme. I think it’s worth noting Laura, this has been an extraordinarily popular scheme. In some respects sadly popular…

LAURA JAYES:

So just to be clear, there’s been no cyber breach of the ATO website, but what we have seen is multiple cases of identity theft. Can you tell us how many?

MICHAEL SUKKAR:

Look Laura these matters are being investigated by the AFP. What we’ve had is 1.2 million people applying for early release of superannuation, well over $10 billion. There’s been one isolated incident where, I think it’s fair to say, identity theft has been involved. It’s being investigated by the AFP, but I emphasise, these are not a compromise of ATO systems…

LAURA JAYES:

Yeah of course.

MICHAEL SUKKAR:

…these are flat out fraud. So we’re investigating those, and as part of that process for today only, so today the ATO will pause requests for early superannuation being sent to super funds. Just for today so they’ll resume on Monday, because we want the ATO today, out of an abundance of caution, to make sure that there’s nothing more we can do to help people protecting their data, to ensure that people are not the victims of identity theft, as is being investigated by the AFP. So today we will undertake that process just to make sure there is nothing more that the ATO can do. But I think it’s worthwhile noting Laura, as was noted yesterday in the Senate Committee, sadly in the world we live in, the ATO and tax payers, and tax payers’ information, is under constant attack. It is literally under constant attack…

LAURA JAYES:

Of course.

MICHAEL SUKKAR:

…every day of the year. This program is no different, this is a very successful program, 1.2 million people, over $10 billion of early release of super. But out of an abundance of caution, we will undertake a further review, just to make sure there’s nothing more that the ATO can do to help tax payers and to help Australians keep their identity, keep themselves, to the greatest extent possible free from some of these fraudulent activities that always happen.

LAURA JAYES:

Okay. Just to be entirely clear here, we originally reported that there may have been about a hundred breaches, identity theft cases, when it comes to early access to super. But are you saying you know of at least one, and you suspect there are more and that is what the AFP is investigating?

MICHAEL SUKKAR:

Well the AFP have outlined that they are investigating one incident that might involve about the number of tax payers that you’ve referred to. So it’s one incident that affects that number of tax payers. So in the scheme of 1.2 million people who have accessed the scheme, it’s obviously very small. But what we want to do is just to make out of an abundance of caution for every single tax payer, that their information, that we can help them keep their information safe so they are not subject to these sorts of attacks or these sorts of attempted fraud. But again, this will be the ATO just trying to help Australians and trying to help tax payers not to be the victim of these sorts of scams. Because as we know, it’s very important to keep your identity, very important to keep your information with trusted sources, because if it gets into the wrong hands, we know what can happen.

LAURA JAYES:

Yes we do. Michal Sukkar, appreciate your time this morning.

MICHAEL SUKKAR:

Thanks so much Laura.