Savings in limbo alert

THOUSANDS of Australians could see their superannuation locked up in long-running legal wrangles after the Federal Government halved funding to the body that handles retirement savings disputes.

Super industry lawyers have raised the alarm over plans to channel complaints to the “one stop shop” Australian Financial Complaints Authority, unveiled in the Budget.

The Superannuation Complaints Tribunal will quickly see its funding drained as the Government transfers disputes to the new authority.

Budget documents reveal funds being tipped into the new body will be “offset by a reduction of funding of $7.2 million over four years from 2017-18 associated with the Superannuation Complaints Tribunal being wound down”.

The tribunal will no longer be operating from July 1, 2020.