The Australian Prudential Regulation Authority (APRA) has begun issuing show cause letters to superannuation fund trustees who did not lodge annual returns for their funds by the 31 October deadline. The trustees will be 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 Commonwealth Director of Public Prosecutions for consideration of a criminal prosecution.

APRA Chief Executive Officer Graeme Thompson said, "With the support of industry bodies, APRA began a campaign in early October to remind superannuation trustees of their obligation to lodge annual returns on time and of the consequences of late lodgement.

"Late lodgement of APRA returns has been a serious systemic problem within the superannuation industry, with only 17 per cent of annual returns lodged with APRA on time last year.

"The response to APRAs campaign this year has been promising, with 8,065 super funds lodging returns by the deadline and 570 requesting extensions of time. The improvement shows that more trustees are taking their obligations seriously. However, the number of returns submitted still represents only 71 per cent of all expected returns. The show cause letters will clearly indicate APRAs resolve and, it is hoped, will jolt tardy trustees into filing their funds' returns rather than risk prosecution.

"Late lodgement of annual returns compromises APRAs ability to perform its prudential function of detecting fund weaknesses and protecting the interests of fund members. Accordingly, APRA is committed to using the powers of the Superannuation Industry (Supervision) Act to prosecute trustees who have failed to lodge within the prescribed period and without legitimate cause."

For more information contact:

Gloria Peterson Public Affairs Manager 02 9210 3385 or 0419 250 286