Plan to stop child sex offenders using super to hide compensation from victims

Child sex abusers will have to open up their superannuation funds to pay compensation to victims under a federal government proposal cracking down on criminals hiding their assets.

Child sex abusers will have to open up their superannuation funds to pay compensation to victims under a federal government proposal cracking down on criminals hiding their assets.

Labor has vowed to “act quickly” to close the “loophole” exposed after multiple high profile reports of convicted offenders shielding millions of dollars in tax-free super accounts to avoid paying the young people they abused.

It can exclusively be revealed two “complimentary” solutions are being considered by the government, which will be taken to parliament “as a matter of priority” after a month of public consultation.

The first measure ensures certain super contributions made by an offender in the lead up to criminal proceedings would be made available to the victim for the purpose of compensation.

The second enables courts to access Australian Taxation Office data about offenders’ superannuation accounts in an effort to ensure greater transparency of assets.

Financial Services Minister Stephen Jones says the government will act quickly to close the compensation loophole. Picture: Britta Campion / The Australian

Financial Services Minister Stephen Jones said the child sexual abuse survivors and advocates had long pushed for the changes.

“These proposals will close a loophole that is causing further harm to victims by denying them court-awarded compensation,” he said.

“Together, these changes will leave offenders no place to hide their assets and no way of avoiding compensating their victims.”

The changes would prevent cases such as former Bega Cheese boss Maurice Van Ryn who claimed to be down to his last $26,000 despite having assets worth up to an estimated $9 million six years ago.

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Van Ryn — serving 18 years with a non-parole period of 13 years 6 months in jail after admitting 17 offences against nine girls and boys between 2003 to 2014 — revealed through his lawyers in 2017 that his “principal asset” was his superannuation fund but told the victims they would get none of it.

Maurice Van Ryn is in jail for child sex offences.

The new Treasury discussion paper being released by Labor found currently an offender subject to, or anticipating, criminal or civil proceedings related to child sexual abuse may be “incentivised” to voluntarily make “large personal contributions” to their or their spouse’s super to “shield assets from potential compensation orders”.

“This can delay or prevent access to compensation and add to the emotional distress of victims,” the report said.

Treasury has proposed all personal super contributions starting either six or 12 months before the day the offender was charged, up to the day the court grants the victim or survivor payment would be deemed “additional”.

Where a child sexual abuse victim had an unpaid compensation order from a court, they could apply for an order requiring the release of moneys from either the offender’s or their spouse’s super.

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Originally published as Plan to stop child sex offenders using super to hide compensation from victims