The Australian Prudential Regulation Authority (APRA) has begun a campaign to remind superannuation trustees of their obligation to lodge annual returns on time and of the consequences of late lodgement.

Late lodgement of APRA annual returns has been a serious systemic problem within the superannuation industry. This compromises APRAs ability to perform its prudential function of detecting fund weaknesses and protecting the interests of fund members.

Earlier this year, APRA expressed strong concern to industry and Government about the poor lodgement rate of the year 2000 returns. At the time, APRA contacted trustees, reminding them of their obligation to provide their annual returns on time. APRA also worked closely with industry bodies to rectify this situation. Although things improved, late and non lodgement have remained a problem.

This year, funds with a balance date of 30 June 2001 must lodge an annual return with APRA no later than 31 October 2001. Trustees who fail to meet that obligation may be referred to the Commonwealth Director of Public Prosecutions (DPP) for consideration of a criminal prosecution without further notice.

It is essential that APRA continues its efforts to ensure that trustees meet their obligations to lodge timely and accurate returns.

Accordingly, APRA has begun to send out reminders to trustees informing them of their obligations to lodge their 2001 returns on time. Those who have not lodged by the deadline will be sent a show cause letter and given 14 days to respond. If no legitimate cause can be shown, APRA will consider evidence in each case and, where appropriate, refer matters to the DPP.

APRA will be reasonable in the exercise of its powers.