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Superannuation scheme: Tax office pausing applications for early access to super

The tax office is pausing applications for early access to superannuation after instances of identity fraud were detected.

More than 1.2 million Australians have applied to withdraw nearly $10 billion from their super accounts during the coronavirus pandemic.

But Australian Federal Police fear up to 150 people have lost $120,000 through identity theft.

Assistant Treasurer Michael Sukkar said claims for early super would be frozen while the alleged frauds were investigated.

“We will undertake that process just to make sure there is nothing more that the Australian Tax Office could do,” he told Sky News on Friday.

The tax office will temporarily freeze the scheme.

The tax office will temporarily freeze the scheme.Source:istock

One case under investigation relates to a tax agent whose databases were hacked by cyber criminals.

Personal details of clients were exploited in the attack.

Home Affairs Minister Peter Dutton, who is responsible for various policing and intelligence agencies, said there had been no cyber intrusions within superannuation funds or the ATO.

“But we do have an instance where this one tax agent has had his system compromised and the personal details of some of those clients are being used in a fraudulent way,” Mr Dutton said.

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