Australian paedophiles are hiding their assets in superannuation instead of paying survivors compensation for their crimes, despite a federal government promise to eliminate the practice.
A legislative crackdown was first promised by then-financial services minister Kelly O’Dwyer in 2018, and last year the federal government vowed to close a legal loophole that allowed perpetrators to bury their assets in superannuation accounts.
Child sexual assault victims struggle to be compensated by their abusers, even despite court orders.Credit: Getty Images
Yet despite bipartisan support, lawyers for survivors say nothing has changed.
Instead, they warn, perpetrators are taking full advantage of the government delays, hiding their assets and dumping huge figures into their superannuation accounts, before declaring bankruptcy to avoid paying compensation.
Amy Olver, who runs Shine Lawyers’ abuse law practice in Victoria, said the delays meant offenders had in effect been given years’ notice to take advantage of the loophole.
“They’ve got an opportunity to hide their assets in their superannuation or in their spouse’s superannuation, and the current law prevents survivors from accessing that,” Olver said.
Amy Olver from Shine Lawyers.Credit:
Asked by this masthead when the laws could come into effect, the federal government did not provide a timeline. It said legislation will be drafted and released in due course.
Olver said the law firm was assisting clients who faced an uphill battle in clawing back compensation.
“Closing this loophole needs to be made a priority by the government,” Olver said.
In one case, Emily, who asked that her surname be withheld, accepted a settlement of more than $300,000 from her perpetrator to avoid a lengthy and traumatising court process after she was sexually abused as a teenager.
Weeks later, the abuser, who had already spent time in jail for sexually assaulting schoolgirls, filed for bankruptcy.
He quietly cleared out his bank accounts and superannuation fund, moving all his assets into his wife’s name, including a new house he had just purchased.
“I ended up getting nothing at all,” Emily said. “I felt completely victimised again. It was all a game to him. He never had any intention of paying a cent.”
Adelaide-based lawyer Andrew Carpenter, who has been pushing for the reform for years through the Super for Survivors campaign, said the delays were unacceptable.
Victims are fighting for access to the superannuation accounts of perpetrators of sexual abuse. Credit: Josh Robenstone
He said it was not merely the case that super funds were unavailable to victims, but paedophiles were deliberately taking steps to hide assets by burying them in their superannuation.
He estimated that taxpayers paid more than $30.1 billion a year in child sex abuse matters each year.
“Most of the time, for the offenders, it doesn’t cost them a cent. In fact, they are wanting taxpayers to indemnify them for their crimes,” he said.
Another child sexual abuse survivor, whose perpetrator was charged by police in 2019, described the process in seeking financial compensation as “excruciating” and said government delays had afforded her perpetrator years to hide all his assets.
Then-financial services minister Kelly O’Dwyer promised to close the loophole in 2018.Credit: Alex Ellinghausen
The Melbourne mother of two, who asked that her name be withheld as her case is before the courts, believed anyone charged with sexual assault should have to disclose their financial circumstances at the time of arrest.
She also said the government must fast-track laws allowing victims of child sexual abuse to access their abuser’s superannuation.
“When you commit such an insidious crime, you don’t have any right to a comfortable life,” she said.
The Melbourne woman said the abuse she experienced as a child had coloured every aspect of her life and led to a cycle of traumatic and abusive relationships.
“I often wonder who I could have been had this not happened to me,” she said.
Olver said survivors of sexual abuse were often left with ongoing mental and physical pain.
“They’ve often not been able to work as a result of the abuse, or had a limited working capacity, and they require ongoing support for the rest of their lives,” she said.
Last year, the government released a discussion paper for consultation, outlining two proposals for the release of an offender’s superannuation.
Under proposed changes, certain super contributions by an offender in the lead-up to criminal proceedings would be made available to victims.
The proposed scheme will allow survivors of child sexual abuse to seek access, via a court order, to additional personal or salary sacrifice superannuation contributions made by the offender, where a related court order for compensation remains unpaid after 12 months.
The issue first came to light in 2017, when the victims of convicted Bega Valley paedophile Maurice Van Ryn discovered they would be unable to access hundreds of thousands of dollars he had in superannuation through a civil compensation claim.
If you or someone you know is experiencing sexual abuse or family violence contact: National Sexual Assault, Domestic Violence Counselling Service 24-hour helpline 1800 RESPECT on 1800 737 732
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