Government proposes new laws to close legal loopholes allowing paedophiles to avoid paying compensation

The Federal Government has proposed new laws to close legal loopholes that allow paedophiles to avoid paying victims’ compensation.

Under the draft legislation, convicted child sexual abusers won’t be able to hide their assets in superannuation from potential compensations orders after a declared bankruptcy.

The push to change laws comes after several high-profile reports of convicted child sexual abuse perpetrators deliberately hiding millions of dollars’ worth of assets in superannuation accounts to defeat claims.

The law would only kick in after a compensation orders has remained unpaid for 12 months or more and would have to be obtained via an application to the Federal Circuit and Family Court of Australia.

Victims will also be able to apply to the Commissioner for visibility of certain information relating to the perpetrator’s superannuation interests to help them assess whether it’s worth pursuing a court order.

However, it will be on a “minimum level” of necessary basis, as the Commissioner won’t be permitted to disclose other information, such as the name of the perpetrator’s superannuation fund or other details about their superannuation interests.

Daniel Mulino — assistant Treasurer and Financial Services minister — said the reforms were about cracking down on perpetrators of horrific acts and revealed 46 submissions had been received as part of the government’s consultation.

“Victim-survivors of childhood sexual abuse do not deserve to be re-traumatised by our financial system. They deserve to receive the compensation awarded to them by the courts,” he said.

“The Government has committed to closing a loophole that enables convicted perpetrators of childhood sexual abuse to shield their assets in superannuation and avoid paying compensation to victims.

“I have met with victims of childhood sexual abuse who have been asking for this policy, and I commend their courage and their relentless advocacy.

“Throughout the Exposure Draft consultation process, we have continued speaking to stakeholders and looking for ways to strengthen this legislation without risking further delays and uncertainty for victim-survivors. “

The reforms will be complemented by amendments to the Bankruptcy Act 1966 to allow compensation debts to survive an offenders’ bankruptcy.

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