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Request for audit
Integrity and performance of the Government’s early release scheme for superannuation
Response provided
Responded: Monday 31 August 2020
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The Auditor-General responded on 31 August 2020 to correspondence from Mr Stephen Jones MP dated 5 August 2020, requesting that the Auditor-General review the integrity and performance of the Government’s early release scheme for superannuation, as established through the Coronavirus Economic Response Omnibus Package Act 2020.
Auditor-General's response
31 August 2020
Stephen Jones MP
Shadow Assistant Treasurer
Shadow Minister for Financial Services
By email: Stephen.Jones.MP@aph.gov.au
Dear Mr Jones
I am writing in response to your letter of 5 August 2020 requesting that I review the integrity and performance of the Government’s early release scheme for superannuation, as established through the Coronavirus Economic Response Omnibus Package Act 2020.
I have considered your request in relation to the audit topics currently listed in the Australian National Audit Office (ANAO) 2020-21 Annual Audit Work Program (AAWP), and prioritisation of audit topics identified under the ANAO’s COVID-19 multi-year audit strategy, and determined that the matter you referred is not a higher priority than other topics included in the AAWP. It is on this basis that I have decided not to commence an audit of the Government’s early release superannuation scheme at this time.
The ANAO is continuing to monitor emerging risks and challenges that impact on the public sector due to COVID-19. Your request for an audit of the Government’s early release superannuation scheme will be considered in the context of planning the priority topics for the ANAO’s 2021-22 AAWP and further consideration of COVID-19 audit topics.
Yours sincerely
Grant Hehir
Correspondence from Mr Stephen Jones MP
Mr Grant Hehir
Auditor-General
Australian National Audit Office
GPO Box 707
CANBERRA ACT 2601
5 August 2020
Dear Auditor-General,
I write to ask that you review the integrity and performance of the Government’s early release scheme for superannuation, as established through the Coronavirus Economic Response Omnibus Package Act 2020.
The scheme was designed to provide financial relief for people expeirencing income loss and hardship caused by the economic impact of COVID-19. This was the clear intent of Parliament in legislating for increased early access.
The Government administration of the scheme appears to have departed from this legislated purpose. Evidence given to the Senate Select Committee overseeing the Government’s response to COVID-19 has revealed major problems with the scheme, including:
- major theft and fraud issues, resulting in the loss of significant quantities of superannuation;
- the lack of any verification mechanism for access to the scheme;
- inaccurate and misleading promotion of the scheme; and
- a $12 billion blowout in estimates of how much superannuation would be withdrawn.
The consequences of these administrative failures for taxpayers are dire:
- fines of up to $12,600 for false declarations and withdrawals;
- tax liabilities on fund withdrawals; and
- disqualification from income support such as JobSeeker.
Government ministers and senior public servants have acknowledged many of these failings, but have not provided any details as to the Government’s response. Despite these failings, the scheme is now being extended by the Government for a further three months.
I thank you in advance for your consideration of this request.
Sincerely,
Stephen Jones MP
Shadow Assistant Treasurer
Shadow Minister for Financial Services