Provident Fund

Kitto J had to consider the expression “provident, benefit or superannuation fund” in Mahoney v Commissioner of Taxation (Cth) (1967) 41 ALJR 232. He said at (232):

“…each of the three descriptive words “provident” , “benefit” and “superannuation” must be taken to have connoted a purpose narrower than the purpose of conferring benefits, in a completely general sense, upon employees….All that need be recognised is that just as “provident” and “superannuation”/i> both refer to the provision of a particular kind of benefit – in one case a provision against contemplated contingencies, and in the other case a provision, to arise on an employee’s retirement or death or other cessation of employment, of a subvention for him or his estate or persons towards whom he may have stood in some kind of relation commonly giving rise to a legal or moral responsibility – so “benefit” must have meant a benefit, not in the general sense, but characterised by some specific purpose. A funeral benefit is a familiar example”.

The term “provident fund” was more common in the first half of the twentieth century and generally referred to a pension fund.

For example Singapore established the “Central Provident Fund” under the Central Provident Fund Act in 1955 (“CPF Act”)

More information of this Provident Fund can be found

Thai, Lang in “Analysis of the Central Provident Fund in Singapore: Should Australia Improve on its Superannuation Guarantee Scheme?” [2000] JlATax 22; (2000) 3(5) Journal of Australian Taxation 359, noted:

The “Maxwell-type” fraud has not yet occurred in Australia, but some action should be taken to prevent such a problem occurring. {PJM Klumpes, “Maxwell and the Accountability of Superannuation Schemes in Australia: A Critical Review of Law Reform” (1993) 21 Australian Business Law Review 194, 197. See also A Freiberg, “Bang Bang Maxwell’s Silver Hammer? Superannuation Crime in the 1990s” (1996) 24 Australian Business Law Review 217, for a list of the relatively important fraud cases which have been documented in the press.