The Minister for Revenue and Assistant Treasurer, Peter Dutton, announced today that the Government has paid a financial assistance grant of $1,483,983.00 to benefit members of the Strategic Capital Superannuation Fund (SCSF).
Mr Dutton said that under Part 23 of the Superannuation Industry (Supervision) Act 1993 (the SIS Act) he had made a determination that it was in the public interest to make a grant of assistance to those people who lost money when the fund was allegedly defrauded.
Almost 500 fund members suffered losses to their accrued superannuation savings as a result of the alleged fraudulent conduct and theft perpetrated on the Perth-based fund.
"Australians can be reassured that there is legislation and a supporting regulatory framework in place to ensure the security of superannuation savings from this type of loss," Mr Dutton said.
"The SIS Act provides a clear framework for providing financial assistance to superannuation funds that have suffered losses due to fraudulent conduct or theft.”
"Trustees of regulated superannuation funds are able to apply for assistance if the fund has suffered losses due to fraud or theft, and those losses have caused substantial diminution of the fund leading to difficulties in the payment of benefits."
Several conditions have been placed on the grant of financial assistance, including that the replacement trustee, Deloitte Management Pty Ltd, continue to explore options open to it for recovery action against parties that may have contributed to the losses suffered by SCSF.
The grant of financial assistance will first be funded out of the Consolidated Revenue Fund, and later recovered by way of a small levy on regulated superannuation funds under the Superannuation (Financial Assistance Funding) Levy Act 1993.