SMSF Association Submission
The SMSF Association (SMSFA) welcomes the opportunity to contribute to the Australian Law Reform Commission’s (ALRC) elder abuse discussion paper. As the peak body representing the SMSF sector, we believe we can provide the ALRC with important insights into SMSFs and make some policy recommendation that can reduce the merging risk of elder abuse.
We are aware of the current dangers emerging from the ageing population and cognitive decline which may make elderly superannuation fund members more vulnerable to financial abuse. The loss of capacity does make members potentially more susceptible to be defrauded or taken advantage of. Nevertheless, we believe it is important to acknowledge that SMSFs are in the vast majority of circumstances are an effective and efficient retirement savings vehicle for older Australians, even where an SMSF member may have lost capacity to be a trustee of the fund. However, the existing regulation of superannuation funds could be adjusted to reduce risks of elder abuse.