The two major accounting bodies have endorsed the Albanese government’s commitment to preventing perpetrators of financial abuse from profiting from the superannuation accounts of their victims when they pass away.
CPA Australia regulations and standards lead Belinda Zohrab-McConnell noted the significance of the move and confirmed the organisation’s backing for an additional component of the measure.
“Financial abuse can impose devastating financial and emotional burdens on victim-survivors,” Zohrab-McConnell recognised.
“CPA Australia supports the proposal to prevent perpetrators of domestic and family violence from receiving their victim’s superannuation after death. By blocking access to victims’ superannuation, we can avoid enriching perpetrators at the expense of innocent beneficiaries.
“We also support holding perpetrators liable for social security debts incurred by victim-survivors of domestic and family violence as a crucial step towards justice and accountability.”
She pointed out this action would not only provide justice for victims of financial abuse, but also act as a deterrent for any potential perpetrators of this type of criminal behaviour.
Chartered Accountants Australia and New Zealand (CAANZ) concurred with the sentiments CPA Australia expressed.
“This is an important issue. The community rightly expects that government systems, such as tax, corporate systems and social security, should be free of manipulation by perpetrators,” CAANZ sustainability and business reform leader Karen McWilliams said.
“A proposal to close loopholes in relation to debts incurred through no fault of the victim-survivor and preventing access to a victim’s superannuation payout by their perpetrator would be important steps forward to ending such exploitation.”
Both bodies acknowledged the critical role accountants can play in the prevention of financial abuse, with CPA Australia revealing it is in the process of providing guidance for its members, particularly those in public practice, to achieve this desired outcome.
The government yesterday announced it will change the current laws that allow an abuser to receive a victim’s superannuation death benefits unless they are the direct cause of that individual’s death if it wins the coming federal election.
