POWERED BY MOMENTUM MEDIA
APRA indeterminant on who pays for early release fraud
The Australian Prudential Regulation Authority (APRA) has refused to confirm that superannuation funds will end up paying the cost of any fraud committed as a result of the Government’s hardship early release superannuation scheme.
APRA deputy chair, Helen Rowell, declined to confirm to a Parliamentary Committee that it would be the superannuation funds rather than the Australian Taxation Office (ATO) who would end up reimbursing members who were the subject of fraud.
What is more, Rowell argued before a hearing of the House of Representatives Standing Committee on Economics that the incidences of fraud attaching to the Government’s early release scheme had not been large or particularly extensive.
Answering questions from the committee’s deputy chairman, ACT Labor’s Andrew Leigh, Rowell confirmed, however, that while the ATO certainly confirmed the eligibility of members to receive early release, it was up to the superannuation funds and their administrators to carry out the further checks validating the early release claims.
She said that the ATO was responsible only for confirming eligibility of a member, with the job of conducting checks and uncovering fraud a matter for the superannuation funds.
However, she disagreed with Leigh that this necessarily meant that in the event of fraud, the superannuation funds would end up making good the losses, suggesting it would depend on the circumstances.
“I don’t think that it is a black and white issue,” Rowell said.
Recommended for you
Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Coalition, which has pledged to reverse any changes if it wins next year’s election.
In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges.
Chant West analysis suggests super could be well placed to deliver a double-digit result by the end of the calendar year.
Specific valuation decisions made by the $88 billion fund at the beginning of the pandemic were “not adequate for the deteriorating market conditions”, according to the prudential regulator.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
